Common use of Interest and Expenses Clause in Contracts

Interest and Expenses. 6.1 You will pay interest to us on any amount that you fail to pay punctually to us under this guarantee. That interest will be payable for the period from the date the amount is demanded or if in respect of any loss or expense the date, if earlier, on which the relevant loss or expense arose, until the date of actual payment (whether or not such payment is after a court judgment or any matter, circumstance or event falling within clause 8.3). During that period that interest will accrue on a daily basis at the rate of 5% per annum (using a 365 day year) over the Bank of England’s official bank rate (commonly known as its base rate or, if that ceases to be available, any comparable rate that we reasonably decide and notify to you) from time to time during that period.