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.