Common use of Interest on Payments in Arrears Clause in Contracts

Interest on Payments in Arrears. Except as otherwise provided in this Financing Commitment, interest shall be paid by the Borrower as follows: (a) on amounts for which CIBC has actually incurred an out-of-pocket expense and for which CIBC has an obligation under this Financing Commitment to reimburse such amounts to any third party incurring the expenses, interest shall be payable on such amount at the CIBC Prime Rate plus 2% from and including the day on which the amount was incurred to but excluding the day on which the amount is reimbursed; and (b) on amounts payable by the Borrower to CIBC under this Financing Commitment where such payment is in default but the non-payment of such amount has not required an actual out-of-pocket expense by CIBC, at the CIBC Prime Rate plus 2% from and including the day on which the payment was due, but excluding the day on which the payment is made whether before or after judgment.