Common use of Prior to Default Clause in Contracts

Prior to Default. Interest on Loans shall be computed on the basis of a hypothetical year of 360 days for the actual number of days elapsed during each calendar month and shall be payable at a simple interest rate equal to the Base Rate times the principal balance outstanding from time to time under the Notes for the number of days such principal amounts are outstanding during such calendar month. Interest then outstanding shall be due and payable in arrears as provided in Section 2.7 hereof.

Prior to Default. Interest on Loans shall be computed on the basis of a hypothetical year of 360 days for the actual number of days elapsed during each calendar month and shall be payable at a simple interest rate equal to the Base Applicable Rate times the principal balance amounts of such Loans outstanding from time to time under the Notes for the number of days such principal amounts are outstanding during such calendar monthoutstanding. Interest then outstanding shall be due and payable in arrears as provided in Section 2.7 hereof2.7.