Common use of Fees Not Considered Interest or Penalties Clause in Contracts

Fees Not Considered Interest or Penalties. Any late fees and related fees, charges, and assessments due to late payment or nonpayment are not interest, credit service charges, or finance charges. Such fees, charges, and assessments are not penalties. Rather, they are liquidated damages intended to be a reasonable advance estimate of Breezeline's costs resulting from late payments and nonpayment. These costs will be difficult to calculate or to predict at the time such late fees and related fees, charges, and assessments are set, because Breezeline cannot know in advance