Common use of Interest on Overdue Amounts; Late Charge Clause in Contracts

Interest on Overdue Amounts; Late Charge. Following the occurrence and during the continuance of any Event of Default, and regardless of whether or not Lender shall have accelerated the maturity of the Loan, the Loan shall bear interest payable on demand at a rate per annum equal to four percent (4.0%) above the rate that would otherwise be applicable at such time (the “Default Rate”) until such amount shall be paid in full (after as well as before judgment) or if such rate shall exceed the maximum rate permitted by law, then at the maximum rate permitted by law. In addition, Borrower shall pay a late charge equal to five percent (5%) of any amount of interest and/or principal payable on the Loan or any other amounts payable hereunder or under the Loan Documents, which is not paid by Borrower within ten (10) days of the date when due (such late charge being applicable only to the amounts not paid within ten (10) days of the date when due). Borrowers acknowledge that it would be extremely difficult or impracticable to determine Lenders’ actual damages resulting from any late payment, Event of Default or prepayment, and the late charges, Default Rate and prepayment fees described in this Agreement are reasonable estimates of those damages and do not constitute a penalty.