What is the “Index?
“Index” means the highest “Prime Rate” reported in the “Money Rates” column in the “Credit Market” section of The Wall Street Journal (Eastern Edition) five (5) Business Days before the beginning of a calendar quarter, rounded up or down to the nearest one hundredth of one percent (0.01%). However, if the “Prime Rate” is not reported in The Wall Street Journal (Eastern Edition) five (5) Business Days before the beginning of a calendar quarter, the Lender will use the highest immediately preceding reported “Prime Rate” in The Wall Street Journal (Eastern Edition) as of that date, rounded up or down to the nearest one hundredth of one percent (0.01%). The “Prime Rate” is only a pricing index and is not necessarily the lowest rate at which loans are made by Lender. If the “Index” described here is no longer available, the Lender will choose a comparable substitute index, and that substitute index will then be considered the “Index”.
The Index in effect for each Billing Cycle shall be the highest of: (i) 6% per annum; (ii) the “Prime Rate” of interest appearing in the “Money Rates” section of The Wall Street Journal published on the 8th business day prior to the last day of such Billing Cycle; or (iii) the highest “Prime Rate” of interest appearing in the “Money Rates” section of The Wall Street Journal published during the previous 60 business days prior to the 8th business day prior to the last day of such Billing Cycle.
