Late Payments; Compounding Sample Clauses
The 'Late Payments; Compounding' clause establishes the consequences and procedures when a payment is not made on time under a contract. Typically, it stipulates that overdue amounts will accrue interest, often calculated on a daily basis and compounded at regular intervals, such as monthly. This means that not only is interest charged on the original overdue sum, but also on any previously accrued interest, increasing the total amount owed over time. The core function of this clause is to incentivize timely payments and compensate the party owed for the delay, while also providing a clear mechanism for calculating additional charges due to late payment.
Late Payments; Compounding. Any sum payable by the Borrower hereunder (including unpaid interest) if not paid when due shall bear interest (payable on demand) from its due date until payment in full at a rate per annum equal to the Reference Rate plus 2.00% per annum. At the option of the Bank, in each instance, any sum payable hereunder which is not paid when due (including unpaid interest) may be added to principal of the Revolving Facility and shall thereafter bear interest at the rate applicable to principal.
Late Payments; Compounding. At the option of each Bank, in each instance, any sum payable hereunder which is not paid when due (including unpaid interest) may be added to principal of this Agreement and shall thereafter bear interest at the rate applicable to principal.