Common use of Covenant to pay default interest Clause in Contracts

Covenant to pay default interest. (a) If: (i) an Event of Default occurs, then the Company shall pay Interest on the Debentures at a rate which is 2% (two per cent) over and above the Applicable Interest Rate for the period until such Event of Default ceases to exists or is cured to the satisfaction of the Trustee (acting on the instructions of the Debenture Holders); (ii) the Company fails to list the Debentures on BSE within 4 (four) trading days from the Issue Closing Date, then the Company shall pay Interest on the Debentures at a rate which is 1% (one per cent) over and above the Applicable Interest Rate for the period from the expiry of 4 (four) trading days from the Issue Closing Date till the final listing approval of Debentures is obtained from BSE; and (iii) the Company fails to execute this Deed within 60 (sixty) days from the Deemed Date of Allotment, then the Company shall pay Interest on the Debentures at a rate which is 2% (two per cent) over and above the Applicable Interest Rate for the period from the expiry of 60 (sixty) days from the Deemed Date of Allotment till the Deed is executed to the satisfaction of the Trustee (acting on the instructions of the Debenture Holders). (b) The default interest payable in accordance with Clause 3.3(a) above (“Default Interest”) will be immediately due and payable. (c) The Company agrees that the Default Interest is a genuine and reasonable pre-estimate of the loss likely to be suffered by the Debenture Holders on account of any default by the Company. Further, any determination or calculation made by a Debenture Holder with regard to the Default Interest payable by the Company under this Deed is conclusive evidence of the matters to which it relates.