Appearance
Illegal Rate Trigger
Definition
The trigger of an alternative rate, suspension or other remedy due to a change in law that makes funding a loan at the agreed rate illegal.
Example
If the Bank shall determine (which determination shall, upon notice thereof to the Borrower be conclusive and binding on the Borrower) that the introduction of or any change in or in the interpretation of any law, rule, regulation or guideline, (whether or not having the force of law) makes it unlawful, or any central bank or other governmental authority asserts that it is unlawful, for the Bank to make, continue or maintain any LIBOR Rate Loan as a LIBOR Rate Loan the Bank will promptly so notify the Borrower.