5 Reference Basis
- 5(1) Where a floating interest rate, exchange rate, price or other calculation basis (Floating Basis) has been agreed in respect of a Transaction, the Bank shall notify the Counterparty of the underlying reference basis on the day such Floating Basis is to be determined (Calculation Date) or promptly thereafter.
- 5(2) If, on a Calculation Date, it is not possible to determine the reference basis agreed in respect of the relevant Transaction, the parties shall determine such reference basis by using a basis of calculation which is as close as possible, to the one agreed with respect to the relevant Transaction. If the reference basis is an interbank interest rate which cannot be determined by mutual agreement within 20 days, the reference basis shall be the arithmetic mean of the interest rates which two banks of international reputation, selected by the Bank offer time deposits in the contractual currency with equivalent maturities to prime banks in the interbank market for about the same amounts as the notional amount at about 11.00 a. m. (local time of the relevant interbank market) on the Calculation Date.
- 5(3) An interest rate used as a reference basis (Base Rate) shall, if necessary, be rounded up to the nearest multiple of one hundred-thousandth of a percentage point.