Our secondary market notes have language that reads under “The Index” section, “Beginning with the first Change Date, my interest rate will be based on an Index. The “Index” is the one-year London Interbank Offered Rate (“LIBOR”) which is the average of interbank offered rates for one-year U.S. dollar-denominated deposits in the London market, as published in The Wall Street Journal. The most recent Index figure available as of the date 45 days before each Change Date is called the “Current Index”.
Doesn’t the 45 days need to be changed to 60 days before 1/10/15?
Or because the payment doesn’t actually change until a month after the interest rate changes, is the 45 day language okay? I’m just having a hard time completely understanding the requirement. Thank you.