Interest Rate and Calculation Clause Samples
The Interest Rate and Calculation clause defines how interest is determined and applied to outstanding amounts under an agreement. It typically specifies the applicable interest rate, whether fixed or variable, and outlines the method and frequency of calculation, such as daily or monthly compounding. This clause ensures both parties understand the cost of borrowing or the penalty for late payments, providing transparency and preventing disputes over interest charges.
Interest Rate and Calculation. The Company shall pay interest at a rate of 12.0% per annum on the outstanding Principal Amount computed by multiplying the actual number of days in such period by a daily interest rate based on a 360-day year, which such interest shall be due and payable on the Maturity Date.
Interest Rate and Calculation. 1.1 Except as otherwise provided in this Promissory Note (the “Note”), commencing on the date of this Note and continuing until such time as all principal, interest and other amounts outstanding hereunder are paid in full, interest shall accrue on the Principal Amount outstanding from time to time at an annual rate equal to Twelve (10%) percent simple interest (the “Interest Rate”).
1.2 Interest on this Note shall be calculated on the basis of a three hundred sixty-five (365) day year factor applied to the actual days on which there exists an unpaid principal balance due under this Note.
Interest Rate and Calculation. 4.1 The monthly interest rate hereunder is seven point forty seven percent (7.47%) (the interest rate for the mid and long term borrowing is calculated yearly in compliance with the regulations of the People’s Bank of China (the “PBC”)). The Interest shall be accrued per month from the Actual Drawdown Date, and the interest settlement date is the 20th day of every month (the 20th day of every month/ the 20th day in the last month of every quarter). The payment of the principal and the accrued interest shall be paid in full when due.
4.2 If PBC adjusts the interest rate applicable to the interest rate hereunder during the period of the Agreement, the Lender, without any notice to the Borrower, may adjust the interest rate and the calculation hereunder accordingly.
Interest Rate and Calculation. 2.1 The option (2) below shall be applied to determine the interest rate hereunder:
(1) RMB fixed interest rate, which shall be implemented based on the (period) ¨ benchmark interest rate ¨ benchmark interest rate floating upward ¨ benchmark interest rate downward on the date ¨ when this Contract becomes effective ¨ when the Loan ▇▇▇▇▇▇▇▇▇ is initially advanced ¨ when the Loan hereunder is actually advanced (the date when each installment of Loan is advanced, if the Loan is advanced in installments). The interest rate shall not be adjusted within the Term of this Contract.
(2) RMB floating interest rate, which is specified below:
i. the interest rate shall be one-year (period) ¨ benchmark interest rate ü¨ benchmark interest rate plus a premium of 10% of the benchmark interest rate, which is on the basis of one-year rate on the day of the loan ¨ benchmark interest rate downward on the date ¨ when this Contract becomes effective ¨ when the Loan hereunder is initially advanced ¨ when the Loan hereunder is actually advanced (the date when each installment of Loan is advanced, if the Loan is advanced in installments).
ii. if People’s Bank of China adjusts the benchmark interest rate during the Term of this Contract, the option a below shall be applied to determine the adjustment date of the interest rate. From the interest rate adjustment date, Lender has the right to execute the adjusted interest rate according to the corresponding interest rate level announced on the interest rate adjustment date, and the range for increase/decrease of the interest rate shall remain the same.
a. the interest rate adjustment date hereunder shall be the interest rate adjustment date of the People’s Bank of China;
b. from the date when the Loan is actually advanced (shall be the advancing date of ¨ the first installment ¨ each installment of the Loan when the Loan is advanced in installments), each day at the end of a ¨ month ¨ quarter ¨ half year ¨ year;
iii. If after the adjustment of the People’s Bank of China, the interest rate becomes floating or the benchmark interest rate is rescinded, both Parties hereto shall adjust the interest rate of the Loan hereunder through negotiation. But such adjusted interest rate shall not be lower than the then applicable bank interest rate; if both parties fail to reach agreement upon the adjusted interest rate after months from the adjustment date of the People’s Bank of China, Lender is entitled to declare an early maturity of the entire ...
Interest Rate and Calculation. The principal balance of the Loan shall be amortized over a period of three (3) years. Interest shall accrue and be payable on the outstanding principal balance at an annual rate of seven percent (7%) (the “Interest Rate”). Interest shall be fully cumulative and shall accrue on a daily basis, based on a 365-day year, and compound monthly on the last day of each month beginning on the last day of the first full month after the Original Issue Date .
Interest Rate and Calculation. (i) With respect to each of Interest Calculation Period determined under Article 6.
1.1 the lending interest rate under this Agreement shall be a floating interest rate and calculated as the sum between floating three-month LIBOR for USD and Interest Margin, of which:
(a) With respect to the first Interest Calculation Period, LIBOR shall be the three-month floating London Interbank Offered Rate for USD as indicated by REUTERS "3750" (Telerate Service Page "3750") at 11:00 am (London time) on the Second (2nd) Business Day (which means the day on which the banks in London provide commercial banking services to their corporate clients) prior to the Drawdown Date; and
(b) With respect to the second and subsequent Interest Calculation Periods, LIBOR applicable thereto shall be the three-month floating London Interbank Offered Rate for USD as indicated by REUTERS "3750" (Telerate Service Page "3750") at 11:00 am (London time) on the Second (2nd)Business Day (which means the day on which the banks in London provide commercial banking services to their corporate clients) prior to the same-digit date of the Interest Payment Date of the last Interest Calculation Period.
(ii) On the ending date of applicable Interest Calculation Period, interest shall be calculated on the basis of three hundred and sixty (360) days per annum multiplied by the actual calculation days, which include the first day of such period but excludes the last day thereof. Interest shall be paid on the last day of each Interest Calculation Period applicable.
Interest Rate and Calculation. The interest rate shall be 35% lower than the prevailing lending interest rate required by the State authority. In the case of the lending interest rate adjustment required by the State authority, the applicable interest rate in the next year will be 35% lower than the adjusted loan interest rate. If the interest rate thus obtained on basis of the calculation as mentioned before (approximated to 0.001, e.g. ▇.▇▇▇%, the forth digit after the decimal point is negligible) is not dividable by 3, the interest rate shall be adjusted by increment of 0.001% until such it is dividable by 3.