Interest Period definition: Copy, customize, and use instantly
Introduction
The term "Interest Period" refers to a defined period in which interest accrues or is calculated under a financial agreement or contract. It is essential for determining how and when interest is charged or paid, typically in loan agreements, credit facilities, or investment terms.
Below are various examples of how "Interest Period" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Interest Period" as a fixed duration
This definition "Interest Period" applies when the interest period follows a predetermined schedule.
"Interest Period" means each consecutive period of [one, three, six, or twelve] months (or any other agreed duration) commencing on the date of borrowing or the last interest payment date, as specified in the agreement.
Definition of "Interest Period" as a lender-specified term
This definition "Interest Period" applies when the lender determines the interest period.
"Interest Period" refers to the period designated by the lender in accordance with the loan agreement, commencing on the date of borrowing and ending on the specified interest payment date.
Definition of "Interest Period" as a borrower-selected term
This definition "Interest Period" applies when the borrower can choose the interest period.
"Interest Period" means the period elected by the borrower from the available options set forth in the loan agreement, commencing on the date of borrowing and continuing for the selected duration.
Definition of "Interest Period" as tied to a reference rate reset
This definition "Interest Period" applies when the interest period aligns with a benchmark rate.
"Interest Period" means each period during which the applicable interest rate is fixed, commencing on the first day after the previous Interest Period and concluding on the next reset date of the applicable reference rate.
Definition of "Interest Period" as aligned with a calendar schedule
This definition "Interest Period" applies when the interest period follows a standard calendar cycle.
"Interest Period" refers to the time period from the first day of a calendar month to the last day of that month, unless otherwise specified in the agreement.
Definition of "Interest Period" as related to loan maturity
This definition "Interest Period" applies when the interest period is tied to the maturity date.
"Interest Period" means the period commencing on the loan origination date and ending on the loan’s maturity date, or any other term specified in the agreement.
Definition of "Interest Period" as a rolling period
This definition "Interest Period" applies when interest accrues continuously over rolling timeframes.
"Interest Period" means each rolling period of [number] days, months, or years, during which interest accrues on the outstanding principal amount.
Definition of "Interest Period" as linked to payment due dates
This definition "Interest Period" applies when the period is determined by scheduled payment dates.
"Interest Period" means the duration between two consecutive interest payment due dates, as set forth in the repayment schedule.
Definition of "Interest Period" as impacted by business days
This definition "Interest Period" applies when the period is adjusted based on business day conventions.
"Interest Period" means each successive period of [specified duration], subject to modification in accordance with applicable business day conventions under the agreement.
Definition of "Interest Period" as affected by early repayments
This definition "Interest Period" applies when early repayments impact interest calculations.
"Interest Period" means the period during which interest accrues on the outstanding principal, provided that any prepayment or early termination shall result in a pro-rated Interest Period.
Definition of "Interest Period" as applicable to a revolving loan
This definition ties "Interest Period" to the specific duration for calculating interest on a revolving loan.
"Interest Period" means, with respect to any revolving loan, the period commencing on the date such loan is made or continued and ending on the numerically corresponding day in the calendar month that is one, three, or six months thereafter, as selected by the borrower.
Definition of "Interest Period" as applicable to a term loan
This definition connects "Interest Period" to the fixed intervals for determining interest accrual in a term loan.
"Interest Period" refers to each period commencing on the first day a term loan bears interest at a fixed rate and ending on the last day of the selected period, subject to market conventions.
Definition of "Interest Period" as related to floating rate notes
This definition links "Interest Period" to the periods used for adjusting interest rates on floating rate notes.
"Interest Period" means each successive period beginning on an interest payment date and ending on the next succeeding interest payment date, during which interest accrues on floating rate notes.
Definition of "Interest Period" as used in LIBOR-based contracts
This definition applies "Interest Period" to loan agreements referencing LIBOR rates.
"Interest Period" refers to a period commencing on the borrowing date of a LIBOR-based loan and ending one, three, six, or twelve months thereafter, as agreed by the lender and borrower.
Definition of "Interest Period" as used in a syndicated loan
This definition ties "Interest Period" to the interest calculation in syndicated loan arrangements.
"Interest Period" means each period during which interest accrues on a syndicated loan, beginning on the date of funding or renewal and ending on the agreed-upon date based on market conventions.
Definition of "Interest Period" as applied to default interest
This definition connects "Interest Period" to the calculation of interest after a default event.
"Interest Period" refers to the time frame used to determine the default interest rate, starting from the date of default and renewing at intervals set forth in the agreement.
Definition of "Interest Period" as specified in derivative contracts
This definition links "Interest Period" to the periods for interest rate swaps and other derivative instruments.
"Interest Period" means each successive period during which interest accrues on the notional principal amount of an interest rate swap, in accordance with the contract terms.
Definition of "Interest Period" as related to overnight rates
This definition applies "Interest Period" to contracts where interest is calculated on an overnight basis.
"Interest Period" means a one-day period commencing each business day, applicable to financial instruments based on overnight interest rates.
Definition of "Interest Period" as applicable to fixed-rate instruments
This definition ties "Interest Period" to fixed-rate loan agreements.
"Interest Period" refers to the agreed-upon period over which a fixed interest rate remains applicable to a loan or debt instrument.
Definition of "Interest Period" as used in municipal bond issuances
This definition connects "Interest Period" to the scheduled accrual of interest on municipal bonds.
"Interest Period" means the duration between interest payment dates for municipal bonds, beginning on the issuance date and continuing in semi-annual or other periodic intervals.
Definition of "Interest Period" as applicable to step-up notes
This definition links "Interest Period" to structured securities with increasing interest rates.
"Interest Period" refers to each segment of time during which a specific interest rate applies to a step-up note before adjusting to a higher rate at pre-set intervals.
Definition of "Interest Period" as determined under central bank guidelines
This definition applies "Interest Period" to loans governed by central bank policies.
"Interest Period" means the duration set by the central bank for calculating interest on financial instruments subject to regulatory interest rate adjustments.
Definition of "Interest Period" as relevant to deferred interest loans
This definition ties "Interest Period" to the accumulation of unpaid interest in deferred interest loans.
"Interest Period" refers to the time during which interest accrues on a deferred interest loan, even if no payment is required until the end of the period.
Definition of "Interest Period" as relevant to project financing
This definition connects "Interest Period" to financing structures used in long-term infrastructure projects.
"Interest Period" means the agreed period over which interest is calculated and capitalized on loans funding project development.
Definition of "Interest Period" as it applies to credit card accounts
This definition links "Interest Period" to the cycle for calculating interest charges on outstanding balances.
"Interest Period" refers to the monthly billing cycle over which interest accrues on outstanding credit card balances, typically from the statement date to the payment due date.
Definition of "Interest Period" as relevant to subordinated debt
This definition applies "Interest Period" to the calculation of interest on junior debt instruments.
"Interest Period" means the interval over which interest accrues on subordinated debt, subject to deferment rights of senior creditors.
Definition of "Interest Period" as specified in cross-border loan agreements
This definition ties "Interest Period" to internationally syndicated loans.
"Interest Period" refers to the period agreed between borrower and lender in cross-border financing arrangements, adjusted for global interest rate benchmarks.
Definition of "Interest Period" as applied to convertible bonds
This definition connects "Interest Period" to debt instruments with conversion rights.
"Interest Period" means the specified term over which interest accrues on convertible bonds, prior to conversion into equity or repayment of principal.
Definition of "Interest Period" as applied to warehouse financing
This definition links "Interest Period" to loans secured by inventory or receivables.
"Interest Period" refers to the duration during which interest accrues on a warehouse financing facility, typically tied to asset liquidation schedules.
Definition of "Interest Period" as applicable to interbank lending agreements
This definition applies "Interest Period" to transactions between financial institutions.
"Interest Period" means each successive term during which interest accrues on interbank deposits, based on agreed-upon reference rates and market conventions.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.