Interest, Late Payment Fee Clause Samples
The 'Interest, Late Payment Fee' clause establishes the obligation for a party to pay additional charges if they fail to make payments on time. Typically, this clause specifies an interest rate or a fixed fee that accrues on overdue amounts, and may outline the calculation method and payment schedule for these penalties. Its core function is to incentivize timely payments and compensate the receiving party for the inconvenience or financial impact of delayed payments.
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Interest, Late Payment Fee. The Borrower shall pay interest on the unpaid principal amount of each Advance made by the Lender from the date of such Advance until such principal amount shall be paid in full, at a rate per annum (computed on the actual number of days elapsed, including the first day and excluding the last, based on a 360 day year) equal at all times during the Interest Period for such Advance to the lesser of (i) the LIBOR for such Interest Period plus the Applicable Margin and (ii) the Maximum Rate, payable in arrears on the last day of such Interest Period, and on the date such Advance shall be paid in full, and, with respect to an Advance having an Interest Period in excess of 30 days, the last day of each calendar month during such Interest Period excluding the month in which such Advance shall be paid in full; provided that during the continuance of an Event of Default, Advances shall bear interest at a rate per annum equal at all times to the lesser of (i) the rate required to be paid on such Advance immediately prior to the date on which such amount became due plus three percent (3%) and (ii) the Maximum Rate.
Interest, Late Payment Fee. The Borrower shall pay interest -------------------------- on the unpaid principal amount of each Advance made by each Bank from the date of such Advance until such principal amount shall be paid in full, at the following rates per annum: