Definition of interest period5
For the purposes of these Regulations, an interest period in relation to a loan is—
a
any period specified in the loan agreement as a period for which interest is to be calculated, or, as the case may be, selected in accordance with that agreement by one of the parties thereto, beginning either on the date on which the loan was first made or on the expiry of the preceding interest period; or
b
where no such period is specified in the loan agreement, but interest is to be calculated under that agreement by reference to a period of at least 360 days, and is payable on two or more specified dates within that period, any period beginning immediately after one and ending on the next of those dates; or
c
in any other case, any period not exceeding one year which is appropriate in the circumstances of the loan.