Common use of Late Payment Interest Clause in Contracts

Late Payment Interest. Any royalty payment that is due Licensor pursuant to this Article 9 that is not paid in full when due shall, as to that portion thereof not paid when due, bear interest for each day late at the rate of eighteen percent (18%) per annum, compounded monthly, or at the maximum rate allowed by law if said maximum amount is less. The calculation of a daily rate shall be made based upon a year of three hundred and sixty (360) days and a month of thirty (30) days. Payments not made when due because of a dispute as to the correct amount thereof shall nonetheless be considered late if ultimately adjudged to be due, and interest shall be paid therein as set out above.