Additional Interest Amount Clause Samples
The Additional Interest Amount clause defines an extra sum of interest that must be paid in addition to the standard interest rate specified in an agreement. This clause typically applies when certain conditions are triggered, such as late payments, breaches of contract, or changes in market rates, resulting in the borrower owing more than the base interest. Its core practical function is to compensate the lender for increased risk or costs, and to incentivize timely and compliant performance by the borrower.
Additional Interest Amount. The Additional Interest Amounts shall be payable to Holders of the Securities (or, with respect to any Securities that have been previously converted, to the Holders of such converted Securities at the time of such conversion) if at any time during the six months to one year following the Issue Date, the Company fails to timely file any document or report that the Company is required to file with the Commission pursuant to Section 13 or 15(d) of the Exchange Act, as applicable; provided that the Company will have 14 calendar days (the “Cure Period”), in the aggregate, to cure all such missed filings. In the event the Company has not so cured a missed filing within the Cure Period, the Additional Interest Amount will be payable on the Interest Payment Date following the expiration of the Cure Period. In the event that the Company is required to pay Additional Interest Amounts to Holders, the Company will provide written notice in the form of an Officers’ Certificate (the “Additional Interest Notice”) to the Trustee and the Co-Trustee of its obligation to pay Additional Interest Amounts no later than 10 calendar days prior to the proposed Interest Payment Date for Additional Interest Amounts (or, in the event the expiration of the Cure Period occurs within 10 days prior to the proposed Interest Payment Date for Additional Amounts, promptly following expiration of the Cure Period), and the Additional Interest Notice shall set forth the amount of Additional Interest Amounts to be paid by the Company on such Interest Payment Date. Neither the Trustee nor the Co-Trustee shall at any time be under any duty or responsibility to any Holder to determine the Additional Interest Amounts, or with respect to the nature, extent or calculation of the amount of Additional Interest Amounts when made, or with respect to the method employed in such calculation of the Additional Interest Amounts.
Additional Interest Amount. Notwithstanding anything to the contrary contained herein, the sole and exclusive damages payable for a violation under Section 2 hereof with respect to which Additional Interest is payable shall be such Additional Interest.
Additional Interest Amount. With respect to references in this Indenture to the payment of interest on any Security, such reference shall be deemed to include the payment of Additional Interest Amount to the extent that, in such context, Additional Interest Amount is, was or would be payable. ARTICLE THREE REDEMPTION AND PURCHASE OF SECURITIES