Ratchet floating rate note

The interest rate collar periodically sets a cap and a floor on the floating rate index: the floor is initially set based on the periodic level of the reference rate and, if this rate increases, the floor is subsequently adjusted periodically to the level of the previous period's reference rate; the cap is set for each period at a specified number of percentage points above the adjusted level of the floor. The periodic interest is established based on the current level of the floating rate index if the index is between the cap and the floor.