Commitment Interest and Fees Clause Samples

The 'Commitment, Interest and Fees' clause defines the borrower's obligations to pay certain financial charges under a loan agreement. It typically outlines the commitment fee charged for undrawn loan amounts, the interest rate applied to borrowed funds, and any additional fees such as administrative or late payment charges. For example, a lender may charge a commitment fee on the unused portion of a credit facility and specify how interest accrues on outstanding balances. This clause ensures both parties are clear on the costs associated with the loan, helping to prevent disputes and allocate financial responsibilities.