Common use of Penal Interest Clause in Contracts

Penal Interest. (i) The Borrower shall operate and monitor the Cash Credit Facility in a manner so that the outstanding in the account does not exceed the sanctioned Limit or the Drawing Power, whichever is less. In the event of any exceeding or overdrawing, the Borrower shall bring down the drawal to the sanctioned Limit or Drawing Power, whichever is lower, as the case may be, immediately and shall also be liable to pay Penal Interest on the overdue amount or on the entire outstanding, at the discretion of the Bank, prevailing on from the date of exceeding upto the date of bringing down. (ii) In addition to Clause (i) above and in the event of default in repayment of the Cash Credit Facility availed and / or payment of interest, the Borrower shall also be liable to pay Penal Interest. (iii) The Borrower will furnish the Bank with all such information as the Bank may reasonably require for satisfaction as to due compliance with terms of the Cash Credit Facility and all such periodical reports and information, at such intervals, in such form and containing such particulars as the Bank may require for the purpose of ascertaining the results of the utilisation of the Cash Credit Facility. (a) Working Capital Demand Loan Facility At the request of the Borrower, the Bank may, at its absolute discretion, agree to extend / grant to the Borrower sums to the maximum extent specified in the Agreement constituting a sub-Limit to the maximum extent of Cash Credit Limit available for utilisation (“Working Capital Demand Loan Facility / WCDL”). The Borrower shall make drawals of the WCDL Facility only through the Facilities Account or any other designated account intimated by the Bank.

Penal Interest. (i) The Borrower shall operate and monitor the Cash Credit Facility in a manner so that the outstanding in the account does not exceed the sanctioned Limit or the Drawing PowerDrawingPower, whichever is less. In the event of any exceeding or overdrawing, the Borrower shall bring down the drawal to the sanctioned Limit or Drawing Power, whichever is lower, as the case may be, immediately and shall also be liable to pay Penal Interest on the overdue amount or on the entire outstanding, at the discretion of the Bank, prevailing on from the date of exceeding upto the date of bringing down. (ii) In addition to Clause (i) above and in the event of default in repayment of the Cash Credit Facility availed and / or payment of interest, the Borrower shall also be liable to pay Penal Interest. (iii) The Borrower will furnish the Bank with all such information as the Bank may reasonably require for satisfaction as to due compliance with terms of the Cash Credit Facility and all such periodical reports and information, at such intervals, in such form and containing such particulars as the Bank may require for the purpose of ascertaining the results of the utilisation of the Cash Credit Facility. (a) Working Capital Demand Loan Facility At the request of the Borrower, the Bank may, at its absolute discretion, agree to extend / grant to the Borrower sums to the maximum extent specified in the Agreement constituting a sub-Limit to the maximum extent of Cash Credit Limit available for utilisation (“Working Capital Demand Loan Facility / WCDL”). The Borrower shall make drawals of the WCDL Facility only through the Facilities Account or any other designated account intimated by the Bank.