Default Interest Rates Clause Samples
The Default Interest Rates clause establishes the rate of interest that will be charged on overdue payments under the agreement. Typically, this clause specifies a higher interest rate that applies automatically if a party fails to pay amounts owed by the due date, often calculated as a percentage above a standard reference rate. By imposing a financial penalty for late payments, the clause incentivizes timely performance and compensates the non-defaulting party for the delay, thereby managing the risk of non-payment and encouraging compliance with payment terms.
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Default Interest Rates. Upon the occurrence and during the continuance of an Event of Default the outstanding principal amount of each Revolving Credit Loan, shall, at the option of the Bank, bear interest payable on demand, at a rate per annum equal to the applicable rate set forth under Section 3.1(a) for each Revolving Credit Loan plus five (5.00%) percent.
Default Interest Rates. The rate of interest applicable to an unpaid sum from time to time during each period relating to that unpaid sum shall be the rate per annum which is the sum of (i) two per cent (2%) (ii) the Applicable Margin (iii) LIBOR relative to such period (or, in respect of any Swingline Loans or Reference Rate Revolving Loans, the Reference Rate) and (iv) the Mandatory Cost, if any, applicable to that unpaid sum provided that:
18.3.1 if, at or about 11.00 a.m. on the Quotation Date in respect of such unpaid sum, it is not possible to determine LIBOR in accordance with the definition of LIBOR there shall be substituted for LIBOR the rate determined by the Agent (and notified to Ideal) to be the weighted average of the rates (as notified to the Agent by the Lenders prior to the first day of the relevant Interest Period) which represent the cost to each Lender of funding its portion of such unpaid sum during such period from whatever sources and in whatever manner it may select; and
18.3.2 if the unpaid sum is of the principal amount of a LIBOR Revolving Loan which became due and payable other than on the last day of any Interest Period relating to it, the first default period applicable to that unpaid sum shall be of a duration equal to the unexpired portion of that Interest Period and the rate of interest applicable to it during that Interest Period shall be the rate per annum equal to the sum of two per cent (2%) and the rate applicable to it immediately before it became due.
Default Interest Rates. The rate of interest applicable to an unpaid sum from time to time during each period relating to that unpaid sum shall be the rate per annum which is the sum of (i) two per cent (2%) (ii) the Applicable Margin (iii) LIBOR relative to such period (or, in respect of any Swingline Loans or Reference Rate Revolving Loans, the Reference Rate) and (iv) the Mandatory Cost, if any, applicable to that unpaid sum provided that:
Default Interest Rates a) As long as any Event of Default shall be continuing, all outstanding Advances shall bear interest at a rate per annum equal at all times to two (2) percentage ponts per annum above the rate of interest otherwise applicable to such Advances in effect from time to time. This default interest rate shall be effective as of the date of the occurrence of an Event of Default under the Agreement and shall remain in effect until such time as the Event of Default is fully remedied. The existence, payment and/or collection of default interest rate(s) shall not constitute a waiver by the Bank of its rights under this Agreement, the Loan Documents or applicable laws and shall not preclude the Bank from:
(i) declaring an Event of Default; or
(ii) taking such action as may be available to it under the terms of this Agreement, the Loan Documents or applicable laws and/or regulations.
Default Interest Rates. If any Event of Default occurs, then, from the date such Event of Default occurs and until it is cured, or until all Obligations are paid and performed in full, whichever first occurs, the Borrower shall pay interest on the unpaid principal balance of the Bridge Loan at a per annum rate equal to 3% plus the rate of interest otherwise specified herein as applicable to such loan (the "Default Rate").
Default Interest Rates. If a Default or an Event of Default shall occur and be continuing all amounts due under the Loan Documents shall bear interest at a rate per annum which is the rate that would otherwise be applicable thereto pursuant to the foregoing provisions of this subsection plus 2% from the date of such non-payment until such amount is paid in full (as well after as before judgment).
Default Interest Rates. If any Event of Default occurs, then, from the date such Event of Default occurs and until it is cured, or until all Obligations are paid and performed in full, whichever first occurs, Borrower shall pay interest on the unpaid principal balance of the Loan at a per annum rate equal to three percent (3%) plus the rate of interest otherwise specified herein as applicable to the Loan (the "Default Rate").