Common use of Interest on Amounts Payable Clause in Contracts

Interest on Amounts Payable. Unless otherwise specified, interest accrues on each amount which is due and payable, but not paid, by either Rio Tinto or BHP Billiton to the other under or in accordance with this Agreement: (a) on a daily basis from the due date up to the date of actual payment; (b) both before and after judgment (as a separate and independent obligation); and (c) at the rate which is the sum of the Bank ▇▇▇▇ Rate plus a margin of 3%, calculated for successive periods of one month, with the first period commencing on the due date of the amount on which interest is payable. The defaulting party must pay interest accrued under this item 1.6 on written demand by the non-defaulting party or, if no demand is made, on the last day of each month. The interest is payable in the currency of the unpaid amount on which it accrues.