Common use of Late Payment and Interest Clause in Contracts

Late Payment and Interest. If any installment of Rent is not ------------------------- paid within five (5) days of the date when due, subject to three (3) days prior written notice, such past due Rent shall bear interest from five (5) days after the due date until paid at the lesser of (a) three per cent (3%) per annum over the prime rate of interest announced from time to time by ▇▇▇▇▇ Fargo National Association, Los Angeles, California. In the event such late charge; is imposed by Lessor for two (2) consecutive months for whatever reason Lessor shall have that option to require that, beginning with the first payment of Rent due following the imposition of the second consecutive late charge. Lessee shall increase the amount of the Security Deposit required under Article 4.9 by one hundred percent (100%) which additional Security Deposit shall be retained by Lessor. This provision shall not relieve Lessee from payment of Rent at the time and in the manner herein specified. The payment by Lessee and receipt by Lessor of the payment charges interest is not a release on waiver by the Lessor of a default by Lessee.