Common use of Interest Accrues on Amounts Owing Clause in Contracts

Interest Accrues on Amounts Owing. Any amount owing to a Party by the other Party pursuant to any provision of this Agreement after Closing and remaining unpaid shall bear compound interest, as computed monthly, from the day such amount was due to be paid until the day such amount was paid, at the Prime Rate, regardless of whether such Party has given the other Party prior notice of the accrual of interest hereunder. If the Vendor receives any money after Closing which is attributable to Petroleum Substances produced after the Effective Date, it shall promptly remt such money to the Purchaser. Any money received and not remitted within 10 days after receipt shall bear interest at the Prime Rate from the date of receipt until the date of payment to the Purchaser.