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.) |
imported>Doug Williamson (Classify page.) |
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* [[Provision]] | * [[Provision]] | ||
* [[Reference rate]] | * [[Reference rate]] | ||
[[Category:The_business_context]] | |||
[[Category:Investment]] | |||
[[Category:Long_term_funding]] | |||
Latest revision as of 10:29, 21 November 2021
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.
