Common use of Interest Rates for Term Loans Clause in Contracts

Interest Rates for Term Loans. (a) Subject to Section 10.6 hereof, the Term Notes shall bear interest on their respective outstanding principal balances at the LIBO Rate; provided, that (1) all principal outstanding, whether then due and payable, after the occurrence of an Event of Default which has not been cured to the satisfaction of the Agent and the Required Lenders or waived in writing by the Agent and the Required Lenders shall bear interest at the Default Rate, which shall be due and payable upon demand, and (2) past due principal and interest shall bear interest at the Default Rate, which shall be payable on demand. Interest on the Term Loans shall be calculated at the LIBO Rate, except where it is expressly provided pursuant to this Agreement, the Alternate Base Rate is to apply. (b) All interest and fees will be computed on the basis of a year of 360 days and actual days elapsed (including the first day but excluding the last day) occurring in the period for which payable, unless the effect of so computing shall be to cause the rate of interest to exceed the Highest Lawful Rate.