Limitation on Interest Payable Clause Samples
A Limitation on Interest Payable clause sets a maximum cap on the amount of interest that can be charged or paid under an agreement. Typically, this clause ensures that the interest rate does not exceed the maximum permitted by applicable law, and may require any excess interest paid to be refunded or credited. Its core function is to protect parties from inadvertently violating usury laws or incurring excessive interest obligations, thereby ensuring compliance and financial fairness in the contract.
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Limitation on Interest Payable. It is the intention of the parties to conform strictly to the usury laws, whether state or federal, that are applicable to the transaction of which this Mortgage is a part. All agreements between Mortgagor and Mortgagee or any Holder, whether now existing or hereafter arising and whether oral or written, are hereby expressly limited so that in no contingency or event whatsoever shall the amount paid or agreed to be paid by Mortgagor for the use, forbearance or detention of the money to be loaned under the Indenture or any other Senior Secured Note Document, or for the payment or performance of any covenant or obligation contained herein or in the Indenture or any other Senior Secured Note Document, exceed the maximum amount permissible under applicable federal or state usury laws. If, under any circumstances, fulfillment of any such provision, at the time performance of such provision shall be due, shall involve exceeding the limit of validity prescribed by applicable law, then the obligation to be fulfilled shall be reduced to the limit of such validity. If, under any circumstances, Mortgagor shall have paid an amount of money which is deemed to be interest and such interest would exceed the highest lawful rate, such amount that would be excessive interest under applicable usury laws shall be applied to the reduction of the principal amount owing in respect of the Senior Secured Note Obligations and not to the payment of interest, or if such excessive interest exceeds the unpaid balance of principal and any other amounts due hereunder, the excess shall be refunded to Mortgagor. All sums paid or agreed to be paid for the use, forbearance or detention of the principal under any extension of credit by Mortgagee (or Holder) shall, to the extent permitted by applicable law, and to the extent necessary to preclude exceeding the limit of validity prescribed by applicable law, be amortized, prorated, allocated and spread from the date of this Mortgage until payment in full of the Senior Secured Note Obligations so that the actual rate of interest on account of such principal amounts is uniform throughout the term hereof.
Limitation on Interest Payable. It is the intention of the parties to conform strictly to all laws relating to the eligibility and rate of interest chargeable that are applicable to the transaction of which this Agreement is a part. All agreements between Pledgor and Trustee, whether now existing or hereafter arising and whether oral or written, are hereby expressly limited so that in no contingency or event whatsoever shall the amount paid or agreed to be paid by Pledgor for the use, forbearance or detention of the money to be loaned or advanced under the Indenture or any related document, or for the payment or performance of any covenant or obligation contained herein or in the Indenture, exceed the maximum amount permissible under applicable laws. If under any circumstances whatsoever fulfilment of any such provision, at the time performance of such provision shall be due, shall involve exceeding the limit of validity prescribed by law, then the obligation to be fulfilled shall be reduced to the limit of such validity. If under any circumstances Pledgor shall have paid an amount deemed interest by applicable law, which would exceed the highest lawful rate, such amount that would be excessive interest under applicable laws shall be applied to the reduction of the principal amount owing in respect of the Secured Obligations and not to the payment of interest, or if such excessive interest exceeds the unpaid balance of principal and any other amounts due hereunder, the excess shall be refunded to Pledgor. All sums paid or agreed to be paid for the use, forbearance or detention of the principal under any
Limitation on Interest Payable. Notwithstanding any other provision of this Agreement and the Note or of any instrument securing this Agreement and the Note or any other Loan Documents, it is expressly agreed that the amounts payable under this Agreement and the Note or under the other aforesaid instruments for the payment of interest or any other payment in the nature of or which would be considered as interest or other charge for the use or loan of money shall not exceed the highest contract rate allowable by state or federal law, whichever shall be lower, from time to time, and in the event the provisions of this Agreement and the Note or of such other instruments referred to herein with respect to the payment of interest or other payments in the nature of or which would be considered as interest or other charge for the use or loan of money shall result in exceeding such limitation, then the excess over such limitation shall not be payable and the amount otherwise agreed to have been paid shall be reduced by the excess so that such limitation will not be exceeded, and if any payment actually made shall result in such limitation being exceeded, the amount of the excess shall constitute and be treated as a payment on the unpaid principal amount hereof and shall operate to reduce such principal amount by the amount of such excess, or if in excess of the principal indebtedness, such excess shall be refunded to Borrowing Group. To the extent permitted by applicable law, all sums paid, or agreed to be paid, to Lender for the use, forbearance, and detention of the indebtedness of Borrowing Group to Lender shall be amortized, pro rated, allocated, and spread throughout the full term of the applicable Note whether the Note until payment is made in full so that the actual rate of the interest does not exceed the lower of (i) eighteen percent (18%) per annum or (ii) the highest rate allowable by law of the States of Maryland, Michigan or Florida in effect at any particular time during the full term thereof.
Limitation on Interest Payable. If, at any time, the rate of interest payable on the Obligations shall be deemed by any competent court of law, governmental agency or tribunal to exceed the maximum rate of interest permitted by any applicable law, then, for such time as such rate would be deemed excessive, its application shall be suspended and there shall be charged instead the maximum rate of interest permissible under such law.
Limitation on Interest Payable. 28 SECTION 13.12. BUSINESS DAYS............................................... 28 SECTION 13.13. RELATIONSHIP................................................ 28 SECTION 13.14. WAIVER OF STAY.............................................. 28 SECTION 13.15. NO CREDIT FOR PAYMENT OF TAXES OR IMPOSITIONS............... 29 SECTION 13.16. NO CLAIMS AGAINST THE MORTGAGEE............................. 29 SECTION 13.17. OBLIGATIONS ABSOLUTE........................................ 29 SECTION 13.18. MORTGAGEE'S RIGHT TO SEVER INDEBTEDNESS..................... 30 SECTION 13.19.
Limitation on Interest Payable. 41 SECTION 11.14