Fiercely debated issue in our area regarding the effective date of Prime Rate changes on Loans. Loan docs state index used is Wall Street Journal Prime Rate and Change Frequency is "whenever Wall Street Journal Prime Rate changes." Please chime in. Thanks!

What do your loan docs say as to when it will change?

We change it effective open of business on the day it's announced, but only for our commercial line. Our consumer line changes the 1st of the following month. Credit card is either the 1st of the following month, or one month subsequent to that, depending on when the FOMC meeting occurs.

Our docs state "as published in WSJ"

It doesn't make sense to wait a day for a prime change, but that's how the "as published" phrase is being interpreted at our bank too.

If you go to the rate published on 3/22, what is it? Until the rate is published you have no documentation the Prime changed until it is "published".

If you have to document in court what the prime published in the WSJ on 3/22 was, which rate would you be able to document "as published". The rate may have been effective on 3/22 but it was not published until 3/23. Just MHO.

FWIW, I agree with Andy and Dan. Your agreement can say anything you want it to - the question is what your agreement says. The language in your poll is different from most that I see, which would read along the lines Dan is talking about. For instance, "Prime Rate, as published in the WSJ." That type of language makes it a little clearer than what you quoted. But even going just by the language you quoted, the WSJ prime cannot change until the WSJ is published (unless you want to specify the online version, which is not - at this point - the normal thing people would think of when you say published in the WSJ).

Our bank defines Prime rate as "published in the Wall Street Journal" It is then effective the next day. It is impossible (at least with our operatings systems) to change a rate once the day is here so the effective date is the next day. We know from news sources when Prime changes but always wait until the rate is published in WSJ. Our consumer Equity Lines of Credit are effective the first day of the following month after a change in Prime. These lines only can change monthly.