Common use of Interest Rate for Inventory Sublimit Clause in Contracts

Interest Rate for Inventory Sublimit. The Financed Inventory Balance shall accrue interest at a per annum rate equal to (i) one and one half percent (1.50%) above the Prime Rate at all times when a Streamline Period is in effect and (ii) three and five eighths percent (3.625%) above the Prime Rate at all times when a Streamline Period is not in effect. Notwithstanding the foregoing, at Bank’s election upon the occurrence and during the continuance of an Event of Default, the Inventory Advances shall bear interest at a rate per annum which is five percentage points (5.0%) above the rate that is otherwise applicable thereto. Payment or acceptance of the increased interest rate provided in this Section is not a permitted alternative to timely payment and shall not constitute a waiver of any Event of Default or otherwise prejudice or limit any rights or remedies of Bank.

Interest Rate for Inventory Sublimit. The Financed Inventory Balance shall accrue interest at a per annum rate equal to (i) one and one half quarter percent (1.501.25%) above the Prime Rate at all times when a Streamline Period is in effect and (ii) three and five eighths one half percent (3.6253.50%) above the Prime Rate at all times when a Streamline Period is not in effect. Notwithstanding the foregoing, at Bank’s election upon the occurrence and during the continuance of an Event of Default, the Inventory Advances shall bear interest at a rate per annum which is five percentage points (5.0%) above the rate that is otherwise applicable thereto. Payment or acceptance of the increased interest rate provided in this Section is not a permitted alternative to timely payment and shall not constitute a waiver of any Event of Default or otherwise prejudice or limit any rights or remedies of Bank.” 2.3 Section 2.1.3