Common use of Capitalized Interest Clause in Contracts

Capitalized Interest. Provided that no Event of Default or Pending Event of Default is then existing, on any Interest Payment Date before the Cash Interest Commencement Date, the Borrower shall have the option to elect (by giving written notice to the Agent at least 10 Business Days prior to such Interest Payment Date) to capitalize interest accrued and payable on such Interest Payment Date in accordance with Section 2(f), in which case, on such Interest Payment Date, the Principal Amount of each Advance shall be increased by the amount of such accrued interest thereon, and such increased Principal Amount shall continue to accrue interest in accordance with Section 2(f).