Interest and Default Interest Clause Samples
The 'Interest and Default Interest' clause defines the obligations of a party to pay interest on outstanding amounts, including additional interest if payments are late. Typically, it specifies the standard interest rate applied to overdue sums and outlines a higher default rate that comes into effect if payments are not made by the due date. This clause ensures that late payments are discouraged and compensates the non-breaching party for the time value of money, thereby promoting timely fulfillment of financial obligations.
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Interest and Default Interest. (1) The rates, calculation method or the time and manner of payment, respectively, of the interest, discount charge, guarantee fee or commission (“Interest and other fees”) shall be determined by the Bank to the extent permitted by applicable laws and regulations, and the Bank shall make available through product description and the Bank’s website for the Obligor to check the Interest and other fees prior to entering into relevant agreements.
(2) With respect to the rate of the Interest and other fees, the Obligor may select one of the following at the time of the agreement:
1. The Bank shall not, in principle, change the rate until the Obligor’s obligations are fully performed; or
2. The Bank may change the rate from time to time until the Obligor’s obligations are fully performed.
(3) If the Obligor selects Paragraph (2) 1. above and there is a material change in circumstances due to sudden changes in the national economy or financial situation, which could not be expected at the time of execution of the agreement, before the obligations are fully performed, then the Bank may increase or decrease the rates of the Interest and other fees by providing notice to the Obligor. In the event the cause for such change ceases to exist, the Bank shall change the rate of the Interest and other fees to conform to such circumstance.
(4) If the Obligor selects Paragraph (2) 2. above, the Bank shall increase or decrease the rates of Interest and other fees in accordance with the financial practices to a reasonable extent.
(5) Any amount not paid by the Obligor to the Bank when due and payable shall bear interest at the default rate determined by the Bank to the extent permitted under the applicable laws and regulations, calculated on a daily basis on 365 days in a year (366 days in a leap year); provided that, the Bank may change the rates to the extent permitted under the applicable laws and regulations in the event of change in financial condition or any other comparable causes.
(6) If the Bank needs to change the calculation method or time and manner of payment of the Interest and other fees and the default interest due to changes in the financial circumstances or any other circumstances affecting credit transactions, such change may be made by the Bank to the extent permitted under the applicable laws and regulations, and shall apply from the date of the first interest payment after such change.
(7) If the change is made pursuant to Paragraph (4), (5) or (6) above,...
Interest and Default Interest. (a) The Borrowers shall pay interest on the unpaid principal amount of the Loan from the respective Drawdown Dates until the principal amount of is paid in full, payable on each Interest Payment Date. Notwithstanding the preceding sentence of this Section 2.04(a), all interest accrued on any balance of the Loan outstanding on the Maturity Date shall be paid on the Maturity Date.
(b) As long as any portion of the Loan shall be outstanding, and payment of the principal thereof and interest thereon shall not be in default, interest thereon shall be payable at an interest rate which shall be adjusted, in advance on the first day of each Interest Period therefor, and which shall be determined as follows:
(i) with respect to any Advance hereunder, the Borrowers shall pay interest thereon at the rate of interest determined by the Agent to be one and three fourths of one percent (1.75%) over the LIBOR Rate;
(ii) the Agent shall give prompt telefax notice to the Borrowers and the Lenders of any applicable interest rate determined in accordance with the provisions of this Section 2.04(b);
(c) In the event that the Agent or any Lender does not receive on the due date any sum due under this Agreement or any of the other Loan Documents in accordance with the terms hereof or thereof, the Borrowers shall pay to the Agent and such Lenders, as the case may be, on demand, interest on such sum, from and including the due date thereof to but not including the date of actual payment, at a rate per annum determined by the Agent from time to time to be three and three-fourths percent (3.75%) over the LIBOR Rate. Except as otherwise provided in the following subsection (d), any such interest which is not paid when due shall be compounded at the end of each Interest Period (both before and after any notice of demand) by the Agent on behalf of the Lenders under this Agreement.
(d) Notwithstanding any provision contained in any of the Loan Documents, no Lender nor the Agent shall ever be entitled to receive, collect, or apply, as interest on the Obligations, any amount in excess of the maximum rate of interest permitted to be charged by applicable law, and, in the event any Lender or the Agent ever receives, collects, or applies as interest, any such excess, such amount which would be excessive interest shall be applied to the reduction of the Obligations then outstanding, and, if the Obligations then outstanding are paid in full, any remaining excess shall forthwith be paid to the ...
Interest and Default Interest. The Australian Borrower agrees to pay interest and default interest on the Notes issued under the Facilities as calculated under the Facilities Agreement as though Clauses 10.2 (Payment of interest) and 10.3 (Default interest) applied to it.
Interest and Default Interest. (i) The interest will be charged on the Facilities as specified in the Schedule 4. The interest specified in the Schedule 4 or any other provision in the Finance Documents will be computed from the respective Due Dates and shall become payable upon the footing of compound interest with monthly rests or such other rests as may be prescribed by the Lender from time to time. The Interest applicable on the Facility or charges debited to the Account of the Borrower shall be calculated on the daily debit balance of such Account.
(ii) Interest, commission, discount and all other charges shall accrue from day to day and shall be computed on the basis of 365 days a year for rupee Facilities, and the actual number of days elapsed.
(iii) The interest payable by the Borrower shall be subject to the changes based on guidelines / directive issued by RBI to small finance banks from time to time and the changes made by the Lender at its sole discretion.
(iv) If the Due Date in respect of any amount payable under the Facilities falls on a day which is not a Business Day at the place where the payment is to be made, the immediately preceding Business Day shall be the Due Date for such payment.
(v) If the Facility(ies) is/are disbursed in multiple tranches in multiple accounts , the Interest Rate applicable to each of such tranche will be decided at the time of disbursement of such tranche, as may be stipulated in the Sanction Letter.
(vi) The Lender is entitled to disburse the Facilities granted/to be granted to the Borrower to in a single account or multiple accounts of any facilities and this agreement would be valid and binding for all such accounts. It is agreed between the parties that the facilities disbursed in such multiple loan accounts may have a varied rate of interest and different repayment date or repayment schedule as may be agreed mutually between the parties at the time of each disbursement and as stipulated in the in the sanction letters subsequently issued for various facilities to be granted within the Overall Limits.
(vii) Interest would be calculated from the date of the loan disbursement i.e. the date of the issuance of the cheque/ transfer instruction / RTGS / NEFT. The Lender would not be responsible for any delay on the part of the Obligors to collect and/or deposit the cheque or otherwise.
Interest and Default Interest. The calculation of interest shall accrue on a daily basis, 1 (one) year shall be 365 (three hundred and sixty-five) days for a credit facility in Thai Baht currency and 1 (one) year shall be 360 (three hundred and sixty) days for a credit facility in other currencies. The Customer agrees that the interest rate to be charged under this Supplement is a rate specified by the Bank which will be notified, through the System or any other Channel or in any other form determined or acceptable by the Bank, to the Customer in Interest Advice for Trust Receipt from time to time until the Maturity Date, hereinafter referred to as the “Interest Period”. Before the beginning of each Interest Period, the Bank will notify the Customer of the interest rate to be applied for the next Interest Period for the purpose of interest payment for that Interest Period. The interest for each Interest Period shall be payable on the last day of each Interest Period. The Customer agrees to pay the principal together with interest on the Maturity Date. The Customer agrees that the interest rate in Interest Advice for Trust Receipt notified by the Bank is the interest rate under this Supplement and without the Customer’s signing in any further documents, the information of such Interest Advice for Trust Receipt shall be a conclusive evidence against the Customer. In the case that the Customer does not make payment of interest for any Interest Period, the Customer agrees that the debt under the Supplement shall be due and payable immediately, regardless of whether or not the Customer sold the Goods under this Supplement, or whether or not the Maturity Date has reached and the Bank shall be entitled to immediately apply the interest at the Default Interest Rate , deriving from the maximum interest rate actually charged at the time with an addition of 3 (three) percent per annum, which will be notified to the Customer in Interest Advice for Trust Receipt, provided that such interest rate shall not exceed the rate prescribed by the law (which may later be changed in the future at the time a default or a breach occurs). In the case that Trust Receipt Loan specifies the amount as a foreign currency, after the Bank converts the foreign currency under the Trust Receipt Loan into Thai Baht in accordance to Clause 6 Paragraph 3, the Bank shall be entitled to charge the Default Interest Rate deriving from the maximum interest rate of (1) Market Rate for Thai Baht Loan or (2) Reference Rate for Thai ...
Interest and Default Interest. The Second Out Exchangeable Notes will bear interest at the rate of 4.0% cash plus 6.0% PIK per annum, payable on a quarterly basis. Upon the occurrence and during the continuation of an event of default on the payment of the Second Out Exchangeable Notes principal and interest, the Issuer shall make: (i) late payment interest of 1.0% per month or fraction of a month, calculated pro rata temporis, from the date of default until the date of actual payment, and (ii) a late payment penalty of 2.0% per annum.
Interest and Default Interest. No interest or default interest shall accrue on the subordinated loan under this Article.
Interest and Default Interest. 14 SECTION 2.05.
Interest and Default Interest. 6.1 Interest will be charged on the Outstanding Advances at a rate per annum equivalent to 12% per annum. Interest will be calculated and accrue on a daily basis (calculated on a year of 365 days and the actual number of days elapsed) and will be payable on repayment of the Outstanding Advances.
6.2 In the event that any monies from time to time payable to the Lender hereunder are not paid on the due date, additional interest shall be payable on the amount due, from the date payment was due to the date payment is made, at a rate equivalent to 6% per annum. Any such interest will be calculated and accrue on a daily basis.
Interest and Default Interest. (a) The Australian Borrower agrees to pay interest and default interest on each Note issued under a Facility as calculated under the Facility Agreement as though Clauses 15.2 (Payment of interest) and 15.4 (Default interest) of the Facility Agreement applied to it.
(b) The Australian Borrower shall pay accrued interest on each Note on the last day of each Interest Period (and, if the Interest Period is longer than six Months, on the dates falling at six monthly intervals after the first day of the Interest Period).
(i) If the Australian Borrower fails to pay any amount payable by it under a Note on its due date, interest shall accrue on the overdue amount from the due date up to the actual payment (both before and after judgment) at a rate 1% higher than the rate which would have been payable if the overdue amount had, during the period of non-payment, constituted an amount payable under a Note in the currency of the overdue amount for successive Interest Periods under the relevant Facility (or, if the overdue amount for successive Interest Periods under the relevant Facility (or, if the overdue amount does not relate to a particular Facility, under Facility A), each of a duration selected by the Facility Agent (acting reasonably). Any interest accruing under this Clause 5(c) shall be immediately payable by the Australian Borrower on demand by the Facility Agent.
(ii) Default interest (if unpaid) arising on an overdue amount will be compounded with the overdue amount at the end of each Interest Period applicable to that overdue amount but will remain immediately due and payable.