Penalty Interest and Compound Interest Sample Clauses
The Penalty Interest and Compound Interest clause establishes the obligation to pay additional interest on overdue amounts, often at a higher rate than the standard interest. In practice, this clause applies when a party fails to make payments on time, and the overdue sum accrues interest not only on the principal but also on any previously accumulated interest, resulting in compounding. Its core function is to incentivize timely payments and compensate the non-breaching party for the delay, thereby discouraging late payments and ensuring financial discipline in contractual relationships.
Penalty Interest and Compound Interest. (1) If the Borrower does to use the loan for the purpose agreed under this Agreement or the Borrower fails to repay the loan on a timely basis and has not achieved agreement with the Lender concerning extension (which constitutes a late repayment), the Lender shall be entitled to a penalty interest for the misused or overdue loan based on the penalty interest rate agreed under this Agreement. With respect to the interest that is not paid on time, the Lender shall be entitled to a compound interest based on the penalty interest rate as agreed under this Agreement.
(2) If the Borrower fails to repay the loan on a timely basis and has not achieved agreement with the Lender concerning extension, which shall constitute an late repayment, the penalty interest rate shall be determined in the way of the following:
a) the interest rate under this Agreement is a fixed rate and the penalty interest and compound interest shall be calculated based on a fixed rate during the overdue period. The penalty interest rate shall be % higher than the interest rate of the loan; or
b) the interest rate under this Agreement is a floating rate and the penalty interest and compound interest shall be calculated based on a floating rate during the overdue period, with the same floating range. The penalty interest shall be higher than the interest of the loan.
(3) If the Borrower does not use the loan for the purpose agreed under this Agreement, which shall constitute a misuse of the loan, the penalty interest rate shall be determined in the way of the following:
a) the interest rate under this Agreement is a fixed rate and the penalty interest and compound interest shall be calculated based on a fixed rate during the misusing period. The penalty interest rate shall be % higher than the interest rate of the loan; or
b) the interest rate under this Agreement is a floating rate and the penalty interest and compound interest shall be calculated based on a floating rate during the misusing period, within the same floating range. The penalty interest shall be higher than the interest of the loan.
(4) The compound interest shall be calculated in the way as agreed under this Agreement.
Penalty Interest and Compound Interest. In the event that the loan under this Contract is overdue or not used for the purpose agreed herein, the lender shall have the right to charge an additional 50% penalty interest according to the loan interest under this Contract from the date of overdue. If the borrower fails to use the loan according to the purpose stipulated in the contract, the lender shall have the right to charge a penalty interest of an additional 100% according to the interest rate of the loan under the contract from the date of misappropriation. The interest (including penalty interest) paid late by the borrower shall be charged compound interest at the contract interest rate, and the penalty interest rate shall be charged compound interest after the loan is overdue.
Penalty Interest and Compound Interest. When the loan under this contract is overdue or the loan is not used according to the purpose agreed in the contract, interest and compound interest shall be calculated in the following method A :
A. If the borrower fails to repay the loan in full and on time if the loan is due (including early maturity) at a fixed interest rate, the lender has the right to charge penalty interest at the borrowing rate of this contract by 50% from the date of overdue; If the borrower fails to use the loan according to the purpose agreed in the contract, the lender has the right to charge penalty interest at the borrowing rate of this contract by 100% from the date of misappropriation. The interest (including penalty interest) paid overdue by the borrower shall be compounded at the interest rate of this contract, and the interest shall be compounded at the penalty interest rate after the loan is overdue.
B. If a loan with a floating interest rate expires (including early maturity) and the borrower fails to repay the loan in full and on time, the lender has the right to charge penalty interest at the current floating interest rate plus 50% from the date of overdue; If the borrower fails to use the loan according to the purpose agreed in the contract, the lender has the right to charge penalty interest at the current floating interest rate plus 100% from the date of misappropriation. The interest paid at the time of the loan (comprehensive payment) will be calculated based on the combined interest rate, and the interest rate calculated after the loan period will be calculated.
Penalty Interest and Compound Interest. 1. If Party B fails to repay the loan on schedule as agreed herein, Party A will calculate the interest on the portion that is past due at the Overdue Penalty Interest Rate starting on the day following the due date of that portion, until both the principal and interest of the loan is paid off. The Penalty Interest Rate for the delayed portion shall be the original interest rate as stipulated in Article 1 herein plus an additional 50% thereof.
2. If Party B fails to use the loan in accordance with the provisions herein, the interest on the diverted portion of the loan shall be calculated at the Diversion Penalty Interest Rate starting on the day of appropriating the portion of the loan, until both the principal and interest of the loan is paid off. The Diversion Penalty Interest Rate for the diverted portion shall be the original interest rate as stipulated in Article 1 herein plus an additional 100% thereof.
3. For the portion that is both past due and used for diverted purpose(s), the interest on this portion of the loan shall be calculated at the Diversion Penalty Interest Rate as stipulated above.
4. If Party B fails to pay any interest on schedule, the interest shall be calculated using the settlement method as stipulated in Provision 3 of in this Article. The interest will be compounded at the loan rate as stipulated in Provision 1 of this article within the term of the loan. After the maturity of the loan, the interest will be compounded at the Penalty Interest Rate stipulated herein.
5. The calculation of penalty interest and compounded interest shall be adjusted in accordance with the loan interest rates as stipulated in this contract; such penalty and compounded interests shall be calculated in segments on the adjustment dates.
Penalty Interest and Compound Interest. (1) If the Borrower fails to use the loan according to the purpose agreed herein, the lender shall have the right to charge penalty interest on the misappropriated cash from the date of misappropriation. The penalty interest rate is set out in Article 23 Special Agreement Clause 12 of this Contract; If the borrower fails to repay the loan on time and fails to reach an agreement with the lender on the extension, that is, if the loan is overdue, the lender shall have the right to charge penalty interest on the overdue loan from the overdue date. The total penalty interest rate is set out in special Clause 13 ofArticle 23 of this Contract; For the interest not paid on time (including the interest before and after the maturity of the loan, the misappropriation penalty interest and the total overdue penalty), the lender shall have the right to charge compound interest at the overdue penalty interest rate of the loan as agreed in this contract. If the same loan is overdue and not used according to the purpose agreed in the contract, the penalty interest rate shall be levied 第6页共31页 The higher rate shall be calculated
(2) If the loan interest rate is fixed, the penalty interest rate is also fixed; If the borrowing interest rate adopts a floating interest rate, the penalty interest rate is also a floating interest rate, and its floating cycle is consistent with the floating cycle of the borrowing interest rate.
(3) The calculation and collection ofpenalty interest and compound interest shall be carried out in accordance with the repayment method of loan interest agreed in this contract.
Penalty Interest and Compound Interest. (1) If the borrower fails to use the loan based on the purpose agreed in the contract, since the date of embezzlement, the lender shall have the right to collect penalty interest for the loan being embezzled, and the penalty interest rate shall be 150% of the loan interest rate; if the borrower fails to repay the loan as scheduled and fails to reach an agreement with the lender on the loan renewal, namely, if the loan becomes overdue, since the date of overdue, the lender shall have the right to collect penalty interest for the overdue loan, and the penalty interest rate shall be 130% of the loan interest rate. For the interest not repaid as scheduled (including interest before and after the expiry of the loan, penalty interest for loan embezzlement and penalty interest for overdue loan), the lender shall have the right to collect compound interest based on the loan overdue penalty interest rate agreed herein. If the loan not only becomes overdue, but is also embezzled, the penalty interest will be collected in the way whichever is higher.
(2) If the fixed loan interest rate is adopted, the penalty interest will also be fixed; if the loan interest rate is floating, the penalty interest will also be floating; the floating cycle will be consistent with the floating cycle of the loan interest rate.
(3) The way to collect the penalty interest and the compound interest shall be implemented based on the loan interest repayment way agreed herein.
Penalty Interest and Compound Interest. (1) If the Borrower fails to use the loan for the purpose as agreed hereunder, the Lender may impose penalty interest on the misappropriated part of the loan at the misappropriation penalty interest rate which is the rate _50_% higher than loan interest rate; if the Borrower fails to make repayment in time, that is, such repayment overdues, the Lender may impose penalty interest on overdue debt at the overdue penalty interest rate which is the rate _50_% higher than loan interest rate; for such interest (including interest before and after loan maturity, misappropriation penalty and overdue penalty interest) if the Borrower fails to pay in time the Lender may impose compound interest at the rate of overdue indebt according to agreement under this Contract. Where the same loan is both overdue and not used for the purpose agreed in the contract, the penalty interest rate shall be calculated at a higher rate.
(2) The penalty rate is also a fixed rate if the payment interest rate is a fixed rate; the penalty rate is also a floating rate if the payment interest rate is a floating rate by a consistent floating period with the floating period of the borrowing rate.
(3) The penalty interest and compound interest are calculated in accordance with the loan interest repayment method agreed in this Contract.
Penalty Interest and Compound Interest. (1) If the Borrower fails to use the loan according to the use hereof, the Lender shall have the right to impose upon penalty interest, and the penalty interest rate increases by ____% of loan interest rate. If the Borrower is overdue to pay back and does not agree with the Lender about future payment, that is, overdue borrowed money; the Lender has the right to impose upon the penalty interest, and penalty interest rate increases by 50 % of loan interest rate. As for the overdue paid interest, the Lender has the right to impose upon the compound interest based on the penalty interest rate hereof.
(2) Loan interest rate adopts the fixed rate, so the penalty interest rate shall be fixed, too. If the loan interest rate uses the fluctuating interest rate, so the penalty interest rate shall be the same, and the fluctuating period shall be the same with the loan interest rate’.
(3) The counting method and payment of penalty interest and compound interest shall perform according to the repayment of loan interest hereof.
Penalty Interest and Compound Interest. In case of default under this Contract, the lender shall have the right to charge penalty interest at a rate 50% above the loan interest rate from the date of default; if the borrower fails to use the loan as agreed in the contract, the lender shall have the right to charge penalty interest at a rate 100% above the loan interest rate from the date of misappropriation. The interest (including penalty interest) on the borrower’s overdue payment shall be compounded at the contract rate, and the compound interest shall be charged at the penalty interest rate after the loan is overdue.
Penalty Interest and Compound Interest. 1. If Party B fails to repay the loan as agreed in this Contract, Party A has the right to charge interest at the penalty interest rate for the loan principal that cannot be repaid on time. The number of days to be charged is the actual number of days overdue from the date of overdue loan to the date of actual settlement. The penalty interest rate is 50% more than the loan interest rate. Compound interest shall be charged at the penalty interest rate for the loan interest that cannot be paid on time.
2. If Party B fails to use the loan for the purposes agreed in the Contract, Party A shall have the right to collect interest on the loan principal not used for the agreed purpose at the default interest rate. The collections days shall be from the day when Party B misappropriates the loan to the actual settlement date. The penalty interest rate is plus 100% on the basis of the loan interest rate, and a compound interest shall be collected according to the default interest rate for the interest that cannot be paid on time.
3. When the loan interest rate of the Contract is adjusted, the penalty interest rate shall be adjusted accordingly, which shall be applied at the same time as the loan interest rate and calculated in sections. If a loan is overdue and not used for the purpose specified in the Contract, the default interest rate shall be calculated at the one whichever is higher.