Common use of Deferred Interest Payments Clause in Contracts

Deferred Interest Payments. The Lender agrees to defer payments of accrued interest on the Loan that are due during the Forbearance Period (the “Deferred Interest”); provided that interest shall continue to accrue during the Forbearance Period at the rate set forth in the Term Note. The interest that accrues during the Forbearance Period shall be paid-in-kind (which, for the avoidance of doubt, will result in the monthly compounding of interest) and shall be deemed added to the outstanding principal balance of the Loan with respect to which such interest has accrued on the applicable Payment Days during such Forbearance Period. The Deferred Interest added to the outstanding principal balance of Loan during the Forbearance Period shall be due and payable in full on the Maturity Date. The Obligors hereby acknowledge that the Lender’s agreement regarding the Deferred Interest is in the nature of a conditional forbearance only, and that the Lender has not made any agreement or commitment to modify or extend the Loan Documents beyond the Forbearance Period, and that, upon the termination of the Forbearance Period, the Lender shall have the immediate right to exercise all remedies under the Loan Documents.