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Cost Inefficient Rate Trigger
Definition
The trigger of an alternative rate, suspension or other remedy due to the cost of funding becoming inefficient for the Lenders.
Example
If the Required Lenders determine that for any reason that the Eurodollar Rate for any Interest Period with respect to a proposed Eurodollar Rate Loan does not adequately and fairly reflect the cost to such Lenders of funding such Loan, the Administrative Agent will promptly so notify the Borrower and each Lender. Thereafter, the obligation of the Lenders to make or maintain Eurodollar Rate Loans shall be suspended until the Administrative Agent (upon the instruction of the Required Lenders) revokes such notice.