Common use of Late Fees and Finance Charges on Past Due Payment Clause in Contracts

Late Fees and Finance Charges on Past Due Payment. In the event that Lessee shall fail to pay any portion of Annual Rent, Additional Rent or other sums due on or before the day which is thirty (30) days after the day on which payment is due, there shall be finance charges added to such unpaid amount beginning with the date the invoice was due at an annual percentage rate of the lesser of ten (10%) or the highest rate allowed by applicable law until paid (“Default Rate”). In addition to the finance charges, there will be a twenty-five dollar ($25) late fee added to the unpaid amount thirty (30) days after the date the installment was due. The late fee and finance charges will be added in order to compensate Lessor for the extra administrative expenses incurred in collecting delinquent accounts. The parties hereto stipulate and agree that Lessor will incur additional expenses in collecting any delinquent payments and the late charges provided for herein are intended to compensate Lessor for overhead and other expenses likely to be incurred in collecting delinquent accounts. The parties further stipulate and agree that the finance charges and late fees are not “interest” and it is not the intent of the parties to contract for, charge or receive interest in excess of the maximum lawful amount. If the finance charges, late fees or other payments charged under this Lease are finally interpreted by a court of law as interest collected or to be collected in excess of the maximum legal rate, then: (i) any such payments charged shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (ii) any sums already collected from Lessee which exceeded permitted limits will be refunded to Lessee.

Late Fees and Finance Charges on Past Due Payment. In the event that Lessee shall fail to pay any portion of Annual Rent, Additional Rent or other sums due on or before the day which is thirty (30) days after the day on which payment is due, there shall be finance charges added to such unpaid amount beginning with the date the invoice was due at an annual percentage rate of the lesser of ten (10%) or the highest rate allowed by applicable law until paid (“Default Rate”). In addition to the finance charges, there will be a twenty-five dollar ($25) late fee added to the unpaid amount thirty (30) days after the date the installment was due. The late fee and finance charges will be added in order to compensate Lessor for the extra administrative expenses incurred in collecting delinquent accounts. The parties hereto stipulate and agree that Lessor Xxxxxx will incur additional expenses in collecting any delinquent payments and the late charges provided for herein are intended to compensate Lessor for overhead and other expenses likely to be incurred in collecting delinquent accounts. The parties further stipulate and agree that the finance charges and late fees are not “interest” and it is not the intent of the parties to contract for, charge or receive interest in excess of the maximum lawful amount. If the finance charges, late fees or other payments charged under this Lease are finally interpreted by a court of law as interest collected or to be collected in excess of the maximum legal rate, then: (i) any such payments charged shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (ii) any sums already collected from Lessee which exceeded permitted limits will be refunded to Lessee.