Additional Late Charge Clause Samples
The Additional Late Charge clause establishes a penalty fee that is imposed when a payment is not made by its due date. Typically, this clause specifies the amount or percentage of the late charge, the grace period (if any) before the charge applies, and the types of payments subject to the penalty, such as rent or loan installments. Its core practical function is to incentivize timely payments and compensate the payee for the inconvenience or administrative costs associated with late payments.
Additional Late Charge. (Check one) ☐ If any amount due under this Agreement remains unpaid for more than __________ days after it is due, then in addition to the Late Charge, such unpaid amounts shall bear interest at the rate of __________% per month, not to exceed the maximum amount allowed by law. ☐ Landlord will NOT require an additional late charge. Returned Payment Fee (Check one) ☐ In the event Landlord receives a payment from Tenant which is returned for insufficient funds, Landlord may, without limiting Landlord’s other remedies, charge Tenant a fee in the amount of __________ to cover Landlord’s overhead and administrative expenses and/or require that all payments thereafter be bank certified or cashier’s checks. ☐ Landlord will NOT charge a fee for returned payments.
Additional Late Charge. In addition to the administrative late charge provided for under Section 6.1, above, if any Rent, Additional Rent or other sum due from Tenant to Landlord is not paid as and when due under this Lease, such unpaid amount shall bear interest from the date due until the date paid at an annual rate of interest equal to the prime rate of interest as