Interest and Interest Related Matters Clause Samples

Interest and Interest Related Matters. (a) Interest Rate Applicable to the Line of Credit. Except as otherwise provided in this Agreement, the unpaid principal amount of each Advance (other than the FILO Advance) shall bear interest at a rate per annum equal to sum of (x) the Prime Rate, plus (y) the Applicable Margin; provided, that the effective interest rate payable by Borrowers with respect to such Advances shall at no time be less than seven percent (7.0%) per annum, which minimum interest rate will apply regardless of fluctuations in the Prime Rate that would otherwise cause the interest rate applicable to such Advances to be less than such minimum interest rate floor. (b) Interest Rate Applicable to the FILO Advance. Except as otherwise provided in this Agreement, the unpaid principal amount of the FILO Advance shall bear interest at a rate per annum equal to sum of (x) the LIBOR Rate, plus (y) the Applicable Margin; provided, that the effective interest rate payable by Borrowers with respect to the FILO Advance shall at no time be less than twelve percent (12.0%) per annum, which minimum interest rate will apply regardless of fluctuations in the LIBOR Rate that would otherwise cause the interest rate applicable to the FILO Advance to be less than such minimum interest rate floor. Unless Borrower elects a lesser amount, so long as no Event of Default has occurred and is continuing, a portion of the interest payable on the FILO Advance equal to two and one-half percent (2.5%) per annum shall capitalized, compounded, and added to the unpaid principal amount of the Obligations on each Interest Payment Date whereupon from and after such date such additional amounts shall also accrue interest at the rate applicable to the FILO Advance (“PIK Interest”). Upon the occurrence and continuance of an Event of Default, all PIK Interest shall be converted to cash interest and become immediately due and payable upon demand by Lender. Unless sooner paid pursuant to Section 2.1(i) hereof, all PIK Interest shall be due and payable in cash on the Termination Date. All PIK Interest shall constitute a portion of the Obligations, bear interest at the rate applicable to the FILO Advance as provided above in this Section 2.4(b) but, for purposes of calculating Availability hereunder such PIK Interest shall be deemed not to constitute Advances or Line of Credit Usage hereunder. (c) Default Interest Rate. Commencing on the day an Event of Default occurs, through and including the date identified by Lender in writ...

Interest and Interest Related Matters