Common use of Applicable Interest Rates Clause in Contracts

Applicable Interest Rates. (a) All Loans hereunder shall bear interest (computed on the basis of a year of 360 days and actual days elapsed) on the unpaid principal amount thereof from the date such Loan is made until maturity (whether by lapse of time, acceleration or otherwise) at a rate per annum equal to the sum of one and one-half of one percent (1.5%) plus the Fed Funds Rate from time to time in effect. Interest on the Loans shall be payable quarterly in arrears on the last day of each March, June, September and December in each year (commencing on the first such date occurring after the date hereof) and at maturity of the Notes, and interest accrued or outstanding after maturity of the Notes (whether by lapse of time, acceleration, or otherwise) shall be due and payable upon demand. Any change in the interest rate on the Loans resulting from a change in the Fed Funds Rate shall be effective on the date of the relevant change in the Fed Funds Rate. (b) If any payment of principal on any Loan is not made when due, such unpaid amount shall bear interest (computed on the basis of a year of 360 days and actual days elapsed) from the date such payment was due until paid in full, payable on demand, at a rate per annum equal to the sum of three and one-half of one percent (3.5%) plus the Fed Funds Rate from time to time in effect.