Common use of Interest Settlement Clause in Contracts

Interest Settlement. The borrower in this contract shall settle the interest in way (1): (1) The interest is settled quarterly. The 20th day of the last month of each quarter is the interest settlement day, and the 21st day is the interest payment day. (2) The interest is settled by month. The 20th day of each month is the interest settlement day, and the 21st day is the interest payment day. The borrower should pay off all the interest on the last repayment day regardless of whether that day is an interest payment day.