Computation of Interest; Payment of Interest. (a) Interest shall be computed for the actual number of days elapsed on the basis of a year of 365/366 days. (b) Except as otherwise set forth herein, interest on each Loan (i) shall accrue on a daily basis and shall be payable in arrears on each Interest Payment Date with respect to interest accrued on and to each such Interest Payment Date at election of the Company in its sole discretion either (x) in cash (“Cash Interest”) or (y) in kind by capitalizing such interest and increasing the outstanding principal amount of such Loans by the amount of interest accrued in respect of such Loans during the applicable Interest Period (“PIK Interest”); (ii) shall accrue on a daily basis and shall be payable in arrears upon any prepayment of such Loan, whether voluntary or mandatory, to the extent accrued on the amount being prepaid; and (iii) shall accrue on a daily basis and shall be payable in arrears at maturity of such Loan, including final maturity of such Loan. (c) The Company may elect the form of interest payment with respect to Loans for each Interest Period by delivering a notice substantially in the form of Exhibit C (a “PIK Interest Election Notice”) (i) as part of the Borrowing Request or (ii) at any time prior to the applicable Interest Payment Date in respect of such Interest Period. Each PIK Interest Election Notice shall include information to the following effect: (i) the relevant Interest Payment Date applicable to such PIK Interest Election Notice; (ii) whether interest shall be paid on such Interest Payment Date (x) as Cash Interest or (y) as PIK Interest; and (iii) if interest shall be paid as PIK Interest, the increase in the principal amount of the Loans to be effective upon the relevant interest payment date as a result of such payment and the principal amount of the Loans to be outstanding as of such Interest Payment Date after giving effect to such payment. If the Company does not deliver a PIK Interest Election Notice in respect of any Interest Period (any such Interest Period, a “Subject Interest Period”), the interest on the Loans for such Subject Interest Period will be payable on the Interest Payment Date in PIK Interest.
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Samples: Credit Agreement (NeueHealth, Inc.), Credit Agreement (NeueHealth, Inc.), Credit Agreement (Bright Health Group Inc.)