Common use of PROMISE TO PAY INTEREST Clause in Contracts

PROMISE TO PAY INTEREST. Debtor promises to pay to Secured Party, on the first day of each month in arrears, on termination of this Agreement pursuant to Section 14.13, on acceleration of the time for payment of the Indebtedness pursuant to Section 12.2 and on the date the Indebtedness is paid in full, interest on the principal of Advances from time to time unpaid at the fluctuating per annum rate specified in Item 18 of the Schedule. Any change in the interest rate resulting from a change in the Prime Rate shall take effect simultaneously with such change in the Prime Rate. Interest shall be computed on the daily unpaid principal balance of Advances. Interest shall be calculated for each calendar day at 1/360th of the applicable per annum rate which will result in any effective per annum rate higher than that specified in Item 18 of the Schedule. From and after the occurrence of an Event of Default and for so long as such Event of Default shall continue, Debtor, as additional compensation to Secured Party for its increased credit risk, and not as penalty, shall pay interest at a per annum rate of 3% greater than the rate of interest specified in the Schedule. In no event shall the rate of interest exceed the maximum rate permitted by applicable law. If Debtor pays to Secured Party interest in excess of the amount permitted by applicable law, such excess shall be applied in reduction of the principal of Advances made pursuant to this Agreement, and any remaining excess interest, after application thereof to the principal of Advances, shall be refunded to Debtor.