Adjusted Eurodollar Rate
Also referred to as the Eurodollar Rate in combination with the Eurodollar Base Rate. A method of determining the interest rate ( www.practicallaw.com/resource.do?item=:44405552) in a loan agreement. Eurodollar refers to US currency held in banks outside of the United States that is generally subject to less regulation than deposits of US currency in the United States. The formula for calculating the Adjusted Eurodollar Rate for an interest period ( www.practicallaw.com/resource.do?item=:44405558) is the ratio of Eurodollar Rate ( www.practicallaw.com/resource.do?item=:44402248) to 1.00- Eurocurrency Reserve Requirement ( www.practicallaw.com/resource.do?item=:44402242). The Adjusted Eurodollar Rate is commonly used in international transactions.
For more information on Eurodollar Rate/LIBOR, see Standard Clauses, Loan Agreement: Borrowing Mechanics ( www.practicallaw.com/3-383-6717) .
For links to loan agreement Eurodollar Rate/LIBOR provisions, see Practice Note, What's Market: Eurodollar Rate/LIBOR Interest Rate Provisions ( www.practicallaw.com/8-385-8146) .