Common use of Overdue Principal and Interest Clause in Contracts

Overdue Principal and Interest. In the event that any Borrower shall fail to make any payment of principal of, or interest on, any Loan when due, whether at maturity or by acceleration or otherwise, interest on such unpaid principal and (to the extent permitted by law) on such unpaid interest shall thereafter be payable on demand at a rate per annum equal to two percent (2%) above the rate otherwise applicable to such Loan hereunder.