Automatic Debit of Interest Clause Samples
The "Automatic Debit of Interest" clause authorizes a lender or service provider to automatically withdraw interest payments directly from a borrower's or customer's designated bank account. In practice, this means that whenever interest becomes due—such as on a loan or outstanding balance—the specified amount is electronically debited without requiring manual payment from the account holder. This clause ensures timely collection of interest, reduces the risk of missed or late payments, and streamlines the payment process for both parties.
Automatic Debit of Interest. The Administrative Agent, without the request of the Borrowers, may make Revolving Credit Loans to pay any interest, fee, service charge, or other payment to which the Administrative Agent or any Lender is entitled from the Borrowers pursuant hereto and may charge the same to the Loan Account notwithstanding that an OverLoan may result thereby. Such action on the part of the Administrative Agent shall not constitute a waiver of the Administrative Agent's rights and the Borrowers' obligations under ss.
Automatic Debit of Interest. The Administrative Agent and the Company may, at any time, enter into an arrangement that provides for the automatic debiting, from a deposit account specified by the Company, of any or all of the accrued interest payable by Borrowers hereunder.
Automatic Debit of Interest. The Agent, without the request of the Borrowers, may make Revolving Credit Loans to pay any interest, fee, service charge, or other payment to which the Agent or any Lender is entitled from the Borrowers pursuant hereto and may charge the same to the Loan Account notwithstanding that an OverLoan may result thereby. Such action on the part of the Agent shall not constitute a waiver of the Agent’s rights and the Borrowers’ obligations under Section 13. Any amount which is added to the principal balance of the Loan Account as provided in this Section 2.8.2 shall bear interest at the interest rate then and thereafter applicable to Base Rate Loans.
Automatic Debit of Interest. The Administrative Agent, without the request of the Borrowers, may make Revolving Credit Loans to pay any interest, fee, service charge, or other payment to which the Administrative Agent or any Lender is entitled from the Borrowers pursuant hereto and may charge the same to the Loan Account notwithstanding that an OverLoan may result thereby. Such action on the part of the Administrative Agent shall not constitute a waiver of the Administrative Agent’s rights and the Borrowers’ obligations under §13. Any amount which is added to the principal balance of the Loan Account as provided in this §2.8.2 shall bear interest at the interest rate then and thereafter applicable to Base Rate Loans.”