Common use of Interest on Prepayments Clause in Contracts

Interest on Prepayments. Interest will be paid on prepayment monies received by the Collector. Interest will be calculated at a rate of three percent (3%) below the prime rate of the Town's principal bank. For payments made from August 1 to December 31, the rate established on December 31 will be used. For payments made from January 1 to May 1, the rate established on April 30 will be used and will be calculated to June 30. Interest will be credited to the owner's property taxaccount. Returned Payments/NSF Cheques/StopPayments If in the property tax prepayment year a property owner's bank account does not contain sufficient funds to cover the amount of two (2) monthly payments, the Collector may immediately disqualify the property owner from the property tax prepayment plan arrangement. All returned payments will be subject to a service charge as set out by the Town of Ladysmith's Fees and Charges Bylaw.