Common use of Contribution Loans Clause in Contracts

Contribution Loans. (a) A Contribution Loan will bear interest at an annual rate of two percent per annum above the Prime Rate in effect on the date the Contribution Loan is made, compounded annually based on a 365-day year, and will be due on the first anniversary of the making of the loan. All expenses and costs of collection, including without limitation attorneys' fees, incurred in connection with a Contribution Loan will be paid by the Defaulting Member and will also bear interest at the rate of the Contribution Loan.