Common use of Interest and Principal Payments Clause in Contracts

Interest and Principal Payments. I. For TWD time deposits and simple-interest savings deposits, interests are paid once a month while principals are recovered upon maturity. For compound-interest savings deposits, interests are accrued on a compound basis and paid together with principal upon maturity. Termination beyond the scheduled maturity is subject to interest penalties according to law. II. For foreign currency time deposits, interests are accrued on a simple basis and paid together with principal upon maturity. Alternatively, arrangements can be made to pay interests monthly and principals upon maturity. Termination beyond the scheduled maturity is subject to interest penalties according to law. III. For foreign currency installment savings deposits, principals are deposited on a monthly basis and paid together with interest in one lump-sum upon maturity. IV. In the event that a time deposit is pledged as collateral and the pledgee does not allow interests to be paid to the deposit holder or have the time deposit automatically renewed upon maturity, the Bank shall no longer make interest payments or renew the pledged time deposit for the Principal. In which case, the Principal shall be solely liable for any future disputes.