Common use of Penalty Interest and Compound Interest Clause in Contracts

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. 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 5050 % 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 100100 % 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. When If the loan under this contract is overdue or the loan is not used according to the purpose agreed in herein, the contract, penalty interest shall be adopted Interest and compound interest shall be calculated in the following method Method A as follows: A. If the borrower fails to repay the loan in full and on time if when the loan with fixed interest rate is due (including early maturity) at a fixed interest rate), the lender has the right to charge collect penalty interest at the borrowing rate of this contract by adding 50% to the loan interest rate hereunder from the date of overdue; If overdue date;If the borrower fails to use the loan according to the purpose agreed in the contract, the lender Lender has the right to charge embezzle the loan from itself The penalty interest at of 100 % shall be charged on the borrowing basis of the loan interest rate of this contract by 100% hereof from the date of misappropriationthis contract. The overdue interest (including the penalty interest) paid overdue by the borrower Borrower shall be compounded at the interest rate of this contractcontract If the payment is overdue, and the compound interest shall will be compounded charged at the penalty interest rate after the loan is overduerate. 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 timetime when the loan with floating interest rate is due (including early maturity), the lender has the right to charge collect the penalty interest at the current floating interest rate plus 50% from the date of overdue; If overdue date.Where the borrower fails to use the loan according to the purpose purposes agreed in the contract, the lender has shall have the right to charge embezzle the loan from itself The penalty interest shall be calculated and charged at the current floating interest rate plus 100% from of the date of misappropriationcurrent period. The interest / %. Interest (including penalty interest) paid late by the Borrower is compounded at the time rate of this Contract, If the loan (comprehensive payment) is overdue, the penalty interest rate will be calculated based on the combined interest rate, and the interest rate calculated after the loan period will be calculatedcompounded.