Penalty Interest against Misappropriation Sample Clauses
The 'Penalty Interest against Misappropriation' clause establishes that if a party wrongfully uses or withholds funds or assets belonging to another party, they must pay an additional interest penalty on the misappropriated amount. Typically, this penalty interest is calculated at a specified rate and accrues from the date of misappropriation until the funds are returned or the issue is resolved. The core function of this clause is to deter parties from misusing funds by imposing a financial consequence, thereby protecting the rightful owner's interests and encouraging prompt rectification of any unauthorized use.
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Penalty Interest against Misappropriation. In case the Borrower misappropriates any Loan, or any part thereof, for the purpose other than that listed in Section 3 (Tenor and Purpose), the Borrower shall, within ten (10) Business Days of its receipt of written demand by the Lender, pay the penalty interest against misappropriation to the Lender. The penalty interest against misappropriation shall be calculated on the amount misappropriated for the actual appropriated days at a rate which is one hundred fifty per cent (150%) of the interest rate agreed herein or at such applicable minimum rate of penalty interest as required by the then prevailing laws of the PRC. The penalty interest with respect to loan amounts that are both overdue and misused shall be calculated according to one hundred fifty per cent (150%) of the interest rate agreed herein or at such applicable minimum rate of penalty interest as required by the then prevailing laws of the PRC. The penalty interest with respect to loan amounts that are both overdue and misused shall accrue until the date that principal and interest with respect to such loan have been paid.
Penalty Interest against Misappropriation. In case the Borrower misappropriates any Loan, or any part thereof, for the purpose other than that listed in Clause 3.1 (Purpose), the Borrower shall, promptly upon the demand by the Facility Agent, pay the penalty interest against misappropriation to the Facility Agent for the benefit of the Lender(s) that advanced that Loan until such misappropriation is rectified. The penalty interest against misappropriation shall be calculated on the amount misappropriated for the actually appropriated days at a rate which is two hundred percent (200%) of the interest rate which would have been applicable if there had been no such misappropriation as provided for in Clause 8.1 (Interest Rate) or such applicable minimum rate of penalty interest as required by then prevailing laws of the PRC, whichever is higher. In no case shall the right of a Lender to collect the penalty interest against misappropriation affect other rights of the Lender under any of the Finance Documents or the applicable laws. If both Clause 9.1 (Overdue Interest) and Clause 9.2 (Penalty Interest against Misappropriation) are applicable to a single payment, then the higher of the two penalty interest rates shall be applicable.
Penalty Interest against Misappropriation. If the Borrower misappropriates any Loan, or any part thereof, for a purpose other than that listed in Section 3.2 (Tenor and Purpose), the Borrower shall, within ten (10) Business Days of its receipt of written demand by the Facility Agent, pay the penalty interest to the Facility Agent for the benefit of the Lenders. The penalty interest shall be calculated based on the amount that has been misappropriated and the actual number of days that such amount was misappropriated, at a rate of one hundred fifty per cent (150%) of the interest rate applicable to such Loan or at such applicable minimum rate of penalty interest as required by the then prevailing laws of the PRC. The penalty interest with respect to loan amounts that are both overdue and misused shall be calculated according to one hundred fifty per cent (150%) of the interest rate agreed herein or at such applicable minimum rate of penalty interest as required by the then prevailing laws of the PRC. The penalty interest with respect to loan amounts that are both overdue and misused shall accrue until the date that the principal and interest with respect to such loan have been paid.