Floating Rate Interest Law and Legal Definition
Floating rate interest is when the rate of interest on a loan varies with a standard reference rate. It is an interest structure whereby the interest rate or rates payable on bonds, or upon successive series of commercial paper, vary from time to time pursuant to or in relation to an index provided by an indexing agent or otherwise established, a formula, base, publicly announced rate, yields on other obligations, determinations of an agent, or any one or combination of the foregoing, with or without approval or consent of the absolute obligor or issuer.
