Reference Rate
/ˈrɛfərəns reɪt/
Definitions
- (n.) A benchmark interest rate used to determine payment amounts or adjustments in financial contracts.
The loan agreement specifies that the interest rate will adjust according to the reference rate.
Forms
- reference rate
- reference rates
Related terms
See also
Commentary
Reference rates are central in financial legal drafting to establish clear, objective standards for interest adjustments and valuations.
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.