Common use of Penalty Interest and Compound Interest Clause in Contracts

Penalty Interest and Compound Interest. (1) If the Borrower does to use the loan for the purpose agreed under this Agreement or the Borrower fails to repay the loan on a timely basis and has not achieved agreement with the Lender concerning extension (which constitutes a late repayment), the Lender shall be entitled to a penalty interest for the misused or overdue loan based on the penalty interest rate agreed under this Agreement. With respect to the interest that is not paid on time, the Lender shall be entitled to a compound interest based on the penalty interest rate as agreed under this Agreement. (2) If the Borrower fails to repay the loan on a timely basis and has not achieved agreement with the Lender concerning extension, which shall constitute an late repayment, the penalty interest rate shall be determined in the way of the following: a) the interest rate under this Agreement is a fixed rate and the penalty interest and compound interest shall be calculated based on a fixed rate during the overdue period. The penalty interest rate shall be % higher than the interest rate of the loan; or b) the interest rate under this Agreement is a floating rate and the penalty interest and compound interest shall be calculated based on a floating rate during the overdue period, with the same floating range. The penalty interest shall be higher than the interest of the loan. (3) If the Borrower does not use the loan for the purpose agreed under this Agreement, which shall constitute a misuse of the loan, the penalty interest rate shall be determined in the way of the following: a) the interest rate under this Agreement is a fixed rate and the penalty interest and compound interest shall be calculated based on a fixed rate during the misusing period. The penalty interest rate shall be % higher than the interest rate of the loan; or b) the interest rate under this Agreement is a floating rate and the penalty interest and compound interest shall be calculated based on a floating rate during the misusing period, within the same floating range. The penalty interest shall be higher than the interest of the loan. (4) The compound interest shall be calculated in the way as agreed under this Agreement.

Penalty Interest and Compound Interest. (1) If I. In case the Borrower does fails to use the loan for any part of the Loan under the purpose of the Loan agreed under in this Agreement Contract, or in case the Borrower fails to repay the loan on a timely basis Loan and fails to reach an agreement for the extension of the time limit for the payment (that is, the Borrower has not achieved agreement with the Lender concerning extension (which constitutes a late repaymentconstituted an overdue of loan), the Lender Loaner shall be entitled to collect a penalty interest for the misused or overdue loan based on at the penalty interest rate agreed under this Agreementspecified herein on the part of the Loan being diverted use of or overdue. With respect Where the Borrower fails to the interest that is not paid on timepay any interest, the Lender shall be Loaner is entitled to collect a compound interest based on at the penalty interest rate as agreed under this Agreementspecified herein. (2) If II. In case the Borrower fails to repay the loan on a timely basis Loan and fails to reach an agreement for the extension of the time limit for the payment (that is, the Borrower has not achieved agreement with the Lender concerning extension, which shall constitute constituted an late repaymentoverdue of loan), the penalty interest rate shall be determined in the way A of the following: a(A) The interest on the interest rate under this Agreement is Loan hereunder shall be calculated at a fixed rate interest rate, and the penalty interest and compound interest shall also be calculated based on at a fixed rate during the for overdue period. The penalty interest rate shall be 30% higher than in addition to the interest rate of the loan; orLoan; b(B) (translation omitted) III. In case the interest rate under this Agreement is a floating rate and Borrower fails to use the penalty interest and compound interest shall be calculated based on a floating rate during the overdue period, with the same floating range. The penalty interest shall be higher than the interest any part of the loan. (3) If the Borrower does not use the loan for Loan under the purpose agreed under this Agreement, which shall constitute a misuse of the loanLoan agreed in this Contract, that is, in case of diversion of the use of the Loan, the penalty interest rate shall be determined in the way A of the following: a(A) The interest on the interest rate under this Agreement is Loan hereunder shall be calculated at a fixed rate interest rate, and the penalty interest and compound interest shall also be calculated based on at a fixed rate during for period of diversion of the misusing perioduse of Loan. The penalty interest rate shall be 50% higher than in addition to the interest rate of the loan; or b) the interest rate under this Agreement is a floating rate and the penalty interest and compound interest shall be calculated based on a floating rate during the misusing period, within the same floating range. The penalty interest shall be higher than the interest of the loan.Loan; (4B) (translation omitted) VI. The compound interest shall be calculated calculate and collected in accordance with the way as agreed under this Agreementprovisions hereof.

Penalty Interest and Compound Interest. (1) If the Borrower does loan under this contract is overdue or not used according to use the loan for the purpose agreed under this Agreement or the Borrower fails to repay the loan on a timely basis and has not achieved agreement with the Lender concerning extension (which constitutes a late repayment), the Lender shall be entitled to a penalty interest for the misused or overdue loan based on the penalty interest rate agreed under this Agreement. With respect to the interest that is not paid on time, the Lender shall be entitled to a compound interest based on the penalty interest rate as agreed under this Agreement. (2) If the Borrower fails to repay the loan on a timely basis and has not achieved agreement with the Lender concerning extension, which shall constitute an late repaymentherein, the penalty interest rate shall be determined in the way of the following: a) the interest rate under this Agreement is a fixed rate adopted Interest and the penalty interest and compound interest shall be calculated based on a fixed rate during the overdue period. The penalty interest rate shall be % higher than the interest rate of the loan; or b) the interest rate under this Agreement is a floating rate and the penalty interest and compound interest shall be calculated based on a floating rate during the overdue period, with the same floating range. The penalty interest shall be higher than the interest of the loan. (3) If the Borrower does not use the loan for the purpose agreed under this Agreement, which shall constitute a misuse of the loan, the penalty interest rate shall be determined in the way of the following: a) the interest rate under this Agreement is a fixed rate and the penalty interest and compound interest shall be calculated based on a fixed rate during the misusing period. The penalty interest rate shall be % higher than the interest rate of the loan; or b) the interest rate under this Agreement is a floating rate and the penalty interest and compound interest shall be calculated based on a floating rate during the misusing period, within the same floating range. The penalty interest shall be higher than the interest of the loan. (4) The compound interest shall be calculated in the way as agreed following methods: A. If the borrower fails to repay the loan on time when the loan with fixed interest rate is due (including early maturity), the lender has the right to charge a penalty interest of 50% according to the loan interest under this Agreementcontract from the overdue date;If the borrower fails to use the loan according to the purpose agreed in the contract, the Lender has the right to embezzle the loan from itself The penalty interest shall be calculated on the basis of the loan interest rate in this contract plus 100 %. The overdue interest (including the penalty interest) paid by the Borrower shall be compounded at the interest rate of this contract If the payment is overdue, compound interest will be charged at the penalty interest rate. B. If the borrower fails to repay the loan on time when the loan with floating interest rate is due (including early maturity), the lender has the right to collect the penalty interest at the current floating interest rate from the overdue date.Where the borrower fails to use the loan according to the purposes agreed in the contract, the lender shall have the right to embezzle the loan from itself The penalty interest shall be calculated and charged on the basis of the floating interest rate plus / % for the current period. Interest (including penalty interest) paid late by the Borrower is compounded at the rate of this Contract, If the loan is overdue, the penalty interest rate will be calculated and compounded.

Penalty Interest and Compound Interest. (1) If the Borrower does to use the loan for the purpose agreed under this Agreement or the Borrower fails to repay the loan on a timely basis and has not achieved agreement with the Lender concerning extension (which constitutes a late repayment), the Lender shall be entitled to a penalty interest for the misused or overdue loan based on the penalty interest rate agreed under this Agreement. With respect to the interest that is not paid on time, the Lender shall be entitled to a compound interest based on the penalty interest rate as agreed under this Agreement. (2) If the Borrower fails to repay the loan on a timely basis and has not achieved agreement with the Lender concerning extension, which shall constitute an late repayment, the penalty interest rate shall be determined in the _____ way of the following: a) the interest rate under this Agreement is a fixed rate and the penalty interest and compound interest shall be calculated based on a fixed rate during the overdue period. The penalty interest rate shall be _____ % higher than the interest rate of the loan; or b) the interest rate under this Agreement is a floating rate and the penalty interest and compound interest shall be calculated based on a floating rate during the overdue period, with the same floating range. The penalty interest shall be _____ higher than the interest of the loan. (3) If the Borrower does not use the loan for the purpose agreed under this Agreement, which shall constitute a misuse of the loan, the penalty interest rate shall be determined in the _____ way of the following: a) the interest rate under this Agreement is a fixed rate and the penalty interest and compound interest shall be calculated based on a fixed rate during the misusing period. The penalty interest rate shall be _____ % higher than the interest rate of the loan; or b) the interest rate under this Agreement is a floating rate and the penalty interest and compound interest shall be calculated based on a floating rate during the misusing period, within the same floating range. The penalty interest shall be _____ higher than the interest of the loan. (4) The compound interest shall be calculated in the way as agreed under this Agreement.

Penalty Interest and Compound Interest. (1) . If the Borrower does to use the loan for the purpose agreed under this Agreement or the Borrower fails to repay the loan on a timely basis and has not achieved agreement with the Lender concerning extension (which constitutes a late repayment), the Lender shall be entitled to a penalty interest for the misused or overdue loan based on the penalty interest rate agreed under this Agreement. With respect to the interest that is not paid on time, the Lender shall be entitled to a compound interest based on the penalty interest rate as agreed under this Agreement. (2) . If the Borrower fails to repay the loan on a timely basis and has not achieved agreement with the Lender concerning extension, which shall constitute an late repayment, the penalty interest rate shall be determined in the first way of the following: a) the interest rate under this Agreement is a fixed rate and the penalty interest and compound interest shall be calculated based on a fixed rate during the overdue period. The penalty interest rate shall be 50% higher than the interest rate of the loan; or b) the interest rate under this Agreement is a floating rate and the penalty interest and compound interest shall be calculated based on a floating rate during the overdue period, with the same floating range. The penalty interest shall be ____ higher than the interest of the loan.. [not applicable] (3) . If the Borrower does not use the loan for the purpose agreed under this Agreement, which shall constitute a misuse of the loan, the penalty interest rate shall be determined in the first way of the following: a) the interest rate under this Agreement is a fixed rate and the penalty interest and compound interest shall be calculated based on a fixed rate during the misusing period. The penalty interest rate shall be 50% higher than the interest rate of the loan; or b) the interest rate under this Agreement is a floating rate and the penalty interest and compound interest shall be calculated based on a floating rate during the misusing period, within the same floating range. The penalty interest shall be ____ higher than the interest of the loan.. [not applicable] (4) . The compound interest shall be calculated in the way as agreed under this Agreement.

Penalty Interest and Compound Interest. (1i) If the Borrower does fails to use the loan Loan for the purpose agreed under this Agreement or the Borrower fails to repay the loan on a timely basis and has not achieved agreement with the Lender concerning extension (which constitutes a late repayment)purposes as specified herein, the Lender shall be entitled shall, from the date of misappropriation, have the right to a collect the penalty interest for on the misused or overdue loan based on misappropriated loan, with the penalty interest rate agreed under this Agreement. With respect to being 100% above the interest that is not paid on time, rate of the Lender shall be entitled to a compound interest based on the penalty interest rate as agreed under this Agreement. (2) Loan hereunder. If the Borrower fails to repay the loan Loan on a timely basis time and has not achieved reached an agreement with the Lender concerning extensionon the extension thereof, which that is, if the Loan is overdue, the Lender shall constitute an late repaymenthave the right to collect a penalty interest on the overdue loan from the overdue date of the Loan at 50% higher than the interest rate of the Loan. For the interest not paid on time (including the interest before and after the maturity of the Loan, misappropriation of penalty interest and overdue penalty interest), the Lender shall have the right to collect compound interest at the overdue penalty interest rate as stipulated herein. If the Loan is overdue and not used for the purposes as specified herein, the penalty interest rate shall be determined in the way higher one. (ii) If the Borrowing Rate is fixed, the penalty interest rate shall also be fixed. If the Borrowing Rate is the Floating Interest Rate, the penalty interest rate shall be also a Floating Interest Rate, and its Floating Period shall be consistent with the Floating Period of the following:Borrowing Rate. a(iii) the interest rate under this Agreement is a fixed rate and the The penalty interest and compound interest shall be calculated based on a fixed rate during the overdue period. The penalty interest rate shall be % higher than the interest rate of the loan; or b) the interest rate under this Agreement is a floating rate and the penalty interest and compound interest shall be calculated based on a floating rate during the overdue period, with the same floating range. The penalty interest shall be higher than the interest of the loan. (3) If the Borrower does not use collected the loan for the purpose agreed under this Agreement, which shall constitute a misuse of the loan, the penalty interest rate shall be determined in the way of the following: a) the interest rate under this Agreement is a fixed rate and the penalty interest and compound interest shall be calculated based on a fixed rate during the misusing period. The penalty interest rate shall be % higher than the interest rate of the loan; or b) the interest rate under this Agreement is a floating rate and the penalty interest and compound interest shall be calculated based on a floating rate during the misusing period, within the same floating range. The penalty interest shall be higher than the interest of the loan. (4) The compound interest shall be calculated in the way repayment method as agreed under this Agreementherein.