Common use of Interest Rate and Payment of Interest Clause in Contracts

Interest Rate and Payment of Interest. Interest shall accrue on the outstanding Principal balance hereof on a simple and non-compounding basis at an annual rate equal to 3.00% (“Interest Rate”). Interest shall be calculated based on a 365-day year and the actual number of days elapsed, to the extent permitted by applicable law. Payment of accrued and unpaid Interest shall be made annually on the calendar anniversary of the Issuance Date, or if such day is not a Business Day the next Business Day, and shall be on pro rata basis if not an exact year.