Common use of Deferred Payment Clause in Contracts

Deferred Payment. If any Transaction between the Company and any Cardholder using a Credit Card is consummated on a deferred payment basis (for which the period of deferral may not exceed 90 days), then for each month during the period of deferral, the Company will pay the Bank an amount equal to the Deferred Payment Rate for such month multiplied by the average daily balance of purchase price so deferred during such month. For purposes of this Section 4.3, "DEFERRED PAYMENT RATE" means, for any month, (i) if the debt of the Bank has an implied investment grade rating at all times during such month, the average interest rate paid by the Bank to obtain funds during such month, and (ii) if the debt of the Bank does not have an implied investment grade rating at all times during such month, the then-current reference rate or index maintained or provided by a nationally recognized investment banking firm (which firm shall be reasonably acceptable to the Company and the Bank) in respect of issuers whose debt has the lowest investment grade rating.