Zero rate provision

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Revision as of 20:48, 18 June 2016 by imported>Doug Williamson (Create the page. Sources: linked pages and The Treasurer, June 2016, p 44.)
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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.


See also