Interest Rate Adjustment
/ˈɪntrəst reɪt əˌdʒʌstmənt/
Definitions
- (n.) A contractual provision allowing the periodic modification of an interest rate based on specified criteria or market conditions.
The loan agreement includes an interest rate adjustment clause tied to the prime rate.
- (n.) A regulatory or statutory change to an interest rate imposed by law or administrative authority.
The central bank implemented an interest rate adjustment to curb inflation.
Forms
- interest rate adjustment
- interest rate adjustments
Related terms
See also
Commentary
Interest rate adjustments commonly appear in loan contracts to accommodate changing economic conditions, requiring clear drafting to specify triggers and calculation methods.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.