Common use of Interest on Assumed Obligations Clause in Contracts

Interest on Assumed Obligations. (a) From and after the date hereof, but prior to the occurrence of an Event of Default, interest shall accrue on the principal portion of the Assumed Indebtedness at a rate per annum equal to the Contract Rate, based on a 360-day year for actual days elapsed. After the occurrence of an Event of Default, interest shall accrue on the principal portion of all obligations. owing by Accentia to McKesson (or to any affiliate of McKesson) at a rate equal to the Default Rate, based on a 360-day year for actual days elapsed. In the absence of acceleration after an Event of Default, accrued interest shall be payable to McKesson (or the applicable affiliate, if any) monthly in arrears on the first business day of each calendar month for the previous month ending commencing with December 1, 2003. (b) In no event shall the interest rate or rates payable under this Agreement the Forbearance Agreement or in connection with the Assumed Indebtedness, plus any other amounts paid in connection herewith, exceed the highest rate permissible under any law that a court of competent jurisdiction shall, in a final determination, deem applicable. Accentia and McKesson, in executing this Agreement, the Forbearance Agreement and the other Documents, intend legally to agree upon the rate or rates of interest and manner of payment stated within it; provided, however, that, anything contained herein or in any Document to the contrary notwithstanding, if said rate or rates of interest or manner of payment exceeds the maximum allowable under applicable law, then, ipso facto as of the date of this Agreement and/or such other Document, Accentia is and shall be liable only for the payment of such maximum as allowed by law, and payment received from Accentia in excess of such legal maximum, whenever received, shall be applied to reduce the principal balance of the Obligations to the extent of such excess.