Default and Interest Clause Samples
The "Default and Interest" clause defines the consequences and procedures that apply when a party fails to fulfill its payment obligations under a contract. Typically, this clause specifies that if a payment is not made by the due date, the defaulting party must pay interest on the overdue amount, often at a predetermined rate or in accordance with a legal standard. By establishing clear penalties for late payments, this clause incentivizes timely performance and compensates the non-defaulting party for the delay, thereby reducing the risk of financial loss due to non-payment.
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Default and Interest. If any payment required to be made by a Party hereunder is not made when due, then all unpaid amounts shall bear interest at a rate equal to Base Rate plus 5% per annum, compounded monthly on the last day of each month until such payment and accrued interest is paid in full. The rate of interest payable on such late payments will change simultaneously with changes in the Base Rate from time to time.
Default and Interest. In the event that any payment required to be made to the Grantor or the Grantee hereunder is not made when due, then all unpaid amounts shall bear interest at the rate equal to 5.0%, compounded quarterly on the last day of each quarter until such credit/payment and accrued interest is paid in full.
Default and Interest. If a Party fails to pay amounts due by the applicable due dates, such Party shall be in default and such amounts shall accrue interest at the Agreed Interest Rate calculated from the due date until the date payment is made.
Default and Interest. In the event that any payment required to be made to the Holder or the Owner hereunder is not made when due, then all unpaid amounts shall bear interest at the rate equal to two percent (2.0%) per month until such credit/payment and accrued interest is paid in full.