Zero rate provision: Difference between revisions
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imported>Doug Williamson (Create the page. Sources: linked pages and The Treasurer, June 2016, p 44.) |
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Revision as of 20:48, 18 June 2016
A term in a loan agreement which limits the effective reference rate to a minimum of zero.
In other words, if the reference rate were to become negative, it is treated as being zero for the purposes of calculating the loan interest payable.
