Common use of Penalty Interest Clause in Contracts

Penalty Interest. (1) Where the loan is overdue or is not used for purposes as agreed herein, penalty interest will be imposed on the part of loan overdue or used for other purposes at the penalty interest rate as agreed herein from the date on which the loan becomes overdue or is misappropriated, till both the principal and interests are paid up. Where the loan is overdue and misappropriated at the same time, penalty interest will be imposed at a higher penalty interest rate. (2) Where the Borrower fails to pay the interest and penalty interest on time, the interest settlement method as agreed in Para. 3 herein shall apply, and compound interest will be calculated and collected at the penalty interest rate as agreed herein. (3) Penalty interest rate ∎ Penalty interest rate for floating rate loan A. Penalty interest rate shall be subject to repricing according to the repricing periods as agreed in Para. 1 herein from the day on which the loan becomes overdue or is misappropriated. The penalty interest rate repricing day shall be the corresponding day of the day on which the loan becomes overdue or is misappropriated in the reppricing month. Where there is no corresponding day, the last day of the month shall be the penalty interest rate repricing day. B. The penalty interest rate for overdue loan shall be 150 % of the basic penalty interest rate as determined in Item C herein, and that for misappropriated loan shall be 200 % of the basic penalty interest rate as determined in Item C herein. C. In the initial repricing period, the basic penalty interest rate shall be the interest rate for loan applicable in the current period of overdue or misappropriated loan. When each repricing period expires, the basic penalty interest rate of the next period shall be repriced on the repricing day by the method as agreed in Para. 1 herein.

Penalty Interest. (1) Where If the loan is overdue or is not used for purposes as the purpose agreed hereinin the contract, penalty interest will shall be imposed levied on the part of loan overdue or used for other purposes at the penalty interest rate as agreed herein misappropriated part from the date on which of the loan becomes overdue or is misappropriated, till both misappropriated part until the principal and interests interest are paid uprepaid. Where the loan is For overdue and misappropriated at the same timeloans, penalty interest will shall be imposed calculated at a the higher penalty interest rate. (2) Where For the interest and penalty interest that the Borrower fails to pay the interest and penalty interest on time, the interest settlement method as agreed in Para. 3 herein shall apply, and compound interest will shall be calculated and collected at according to the penalty interest rate as agreed hereinin this paragraph in the manner of settlement agreed in Paragraph 3 of this Article. (3) Penalty interest rate ∎ Penalty interest rate for floating rate loan A. Penalty interest rate shall be subject to repricing (Remarks: Fill in according to the repricing periods as agreed in Para. 1 herein currency of the loan and the way of determining the interest rate) A. Floating interest rate, the floating period is month / year (Remarks: For fixed interest rate loans with a term of less than one year (inclusive), the floating period is the original loan term;Fixed-rate loans for more than one year, with a one-year floating period).Reprice once per floating period from the day on which the loan becomes date of overdue or is misappropriated. misappropriation.The penalty interest rate repricing day date shall be the corresponding day of the day on which the loan becomes overdue or is misappropriated in the reppricing monthdate. Where If there is no corresponding daysuch date in the current month, the last day of the current month shall be the penalty interest rate repricing daydate. B. The penalty interest rate for overdue loan loans shall be 150 charged % at the base rate of penalty interest determined in subparagraph C, and the basic penalty interest rate as determined in Item C herein, and that for misappropriated loan loans shall be 200 % charged at the base rate of the basic such penalty interest rate as determined in Item C herein.% C. In the initial repricing first floating period, the basic base rate of penalty interest is the borrowing rate shall be agreed in paragraph 1 of this article.After the interest rate for loan applicable in the current period completion of overdue or misappropriated loan. When each repricing period expiresfloating period, the basic penalty interest rate of the next floating period is based on the quoted rate of the market for loans with maturity of ☐ 1 year /☐ 5 years or more (optional) last published by the Nationwide Interbank Offered Center as of one business day prior to the repricing date. ☐ plus /☐ minus (optional) the base point is determined. A. From the date of overdue or misappropriation, float in the period specified in paragraph 1 of this Article.The penalty interest repricing date shall be the late or misappropriated date. If there is no corresponding date in the current month, the last day of the current month shall be the penalty interest repricing date. B. The penalty interest rate for overdue borrowings shall be charged at the base rate of penalty interest determined in subparagraph C 40 %, and the penalty interest rate for misappropriated borrowings shall be charged at the base rate of penalty interest determined in subparagraph C 70 % C. The base rate of penalty interest in the first floating period is overdue or misappropriated the loan interest rate actually executed in the current period. After each floating period, the base rate of penalty interest in the next floating period shall be repriced on the repricing day by date in accordance with the method as manner stipulated in paragraph 1 of this Article. The penalty interest rate for overdue loans shall be the basis point above the loan interest rate set in Paragraph 1 (1) of this Article basis points, and the penalty interest rate for misappropriated loans shall be the basis point above the loan interest rate set in Paragraph 1 (1) of this Article basis points A. The floating period and repricing date of penalty interest shall be determined in accordance with Paragraph 1 (2) of this Article. The basic interest rate of penalty interest within the first floating period shall be overdue or misappropriated the loan interest rate actually implemented in the current period. The basic interest rate of penalty interest in the next floating period after the completion of each floating period shall be repriced in accordance with the manner agreed in Para. Paragraph 1 herein(2) of this article on the repricing date. B. The penalty interest rate for overdue loans shall be the base rate of penalty interest determined in subparagraph A plus the basis point, and the penalty interest rate for misappropriated loans shall be the base rate of penalty interest determined in subparagraph A plus the basis point. A. From the date of overdue or misappropriation, the penalty base rate fluctuates according to the settlement period, with the penalty base rate for each settlement period being the effective execution rate for the previous settlement period. B. The penalty interest rate for overdue loans shall be the base rate of penalty interest determined in subparagraph A plus the basis point, and the penalty interest rate for misappropriated loans shall be the base rate of penalty interest determined in subparagraph A plus the basis point.

Penalty Interest. (1) Where If the loan is overdue or is not used for purposes as the purpose agreed hereinin the contract, penalty interest will shall be imposed levied on the part of loan overdue or used for other purposes at the penalty interest rate as agreed herein misappropriated part from the date on which of the loan becomes overdue or is misappropriated, till both misappropriated part until the principal and interests interest are paid uprepaid. Where the loan is For overdue and misappropriated at the same timeloans, penalty interest will shall be imposed calculated at a the higher penalty interest rate. (2) Where For the interest and penalty interest that the Borrower fails to pay the interest and penalty interest on time, the interest settlement method as agreed in Para. 3 herein shall apply, and compound interest will shall be calculated and collected at according to the penalty interest rate as agreed hereinin this paragraph in the manner of settlement agreed in Paragraph 3 of this Article. (3) Penalty interest rate ∎ Penalty interest rate for floating rate loan A. Penalty interest rate shall be subject to repricing (Remarks: Fill in according to the repricing periods as agreed in Paracurrency of the loan and the way of determining the interest rate) A. Floating interest rate, the floating period is / month/ / year (Remarks: For fixed interest rate loans with a term of less than one year (inclusive), the floating period is the original loan term;Fixed-rate loans for more than one year, with a one-year floating period). 1 herein Reprice once per floating period from the day on which the loan becomes date of overdue or is misappropriatedmisappropriation. The penalty interest rate repricing day date shall be the corresponding day of the day on which the loan becomes overdue or is misappropriated in the reppricing monthdate. Where If there is no corresponding daysuch date in the current month, the last day of the current month shall be the penalty interest rate repricing daydate. B. The penalty interest rate for overdue loan loans shall be 150 charged / % at the base rate of penalty interest determined in subparagraph C, and the basic penalty interest rate as determined in Item C herein, and that for misappropriated loan loans shall be 200 % charged at the base rate of the basic such penalty interest rate as determined in Item C herein./ % C. In the initial repricing first floating period, the basic base rate of penalty interest is the borrowing rate shall be agreed in paragraph 1 of this article. After the interest rate for loan applicable in the current period completion of overdue or misappropriated loan. When each repricing period expiresfloating period, the basic penalty interest rate of the next floating period is based on the quoted rate of the market for loans with maturity of ☐ 1 year /☐ 5 years or more (optional) last published by the Nationwide Interbank Offered Center as of one business day prior to the repricing date. ☐ plus /☐ minus (optional) the base point is determined. A. From the date of overdue or misappropriation, float in the period specified in paragraph 1 of this Article. The penalty interest repricing date shall be the late or misappropriated date. If there is no corresponding date in the current month, the last day of the current month shall be the penalty interest repricing date. B. The penalty interest rate for overdue borrowings shall be charged at the base rate of penalty interest determined in subparagraph C 40 %, and the penalty interest rate for misappropriated borrowings shall be charged at the base rate of penalty interest determined in subparagraph C 70% C. The base rate of penalty interest in the first floating period is overdue or misappropriated the loan interest rate actually executed in the current period. After each floating period, the base rate of penalty interest in the next floating period shall be repriced on the repricing day by date in accordance with the method as manner stipulated in paragraph 1 of this Article. 第 6 页 共 23 页 The penalty interest rate for overdue loans shall be the basis point above the loan interest rate set in Paragraph 1 (1) of this Article / basis points, and the penalty interest rate for misappropriated loans shall be the basis point above the loan interest rate set in Paragraph 1 (1) of this Article / basis points A. The floating period and repricing date of penalty interest shall be determined in accordance with Paragraph 1 (2) of this Article. The basic interest rate of penalty interest within the first floating period shall be overdue or misappropriated the loan interest rate actually implemented in the current period. The basic interest rate of penalty interest in the next floating period after the completion of each floating period shall be repriced in accordance with the manner agreed in Para. Paragraph 1 herein(2) of this article on the repricing date. B. The penalty interest rate for overdue loans shall be the base rate of penalty interest determined in subparagraph A plus / the basis point, and the penalty interest rate for misappropriated loans shall be the base rate of penalty interest determined in subparagraph A plus the basis point. A. From the date of overdue or misappropriation, the penalty base rate fluctuates according to the settlement period, with the penalty base rate for each settlement period being the effective execution rate for the previous settlement period. B. The penalty interest rate for overdue loans shall be the base rate of penalty interest determined in subparagraph A plus / the basis point, and the penalty interest rate for misappropriated loans shall be the base rate of penalty interest determined in subparagraph A plus the basis point.

Penalty Interest. (1) Where If the loan is overdue or is not used for purposes as agreed hereinaccording to the contractual purpose, from the date of overdue or misappropriation, the overdue or misappropriated part shall be charged according to the penalty interest rate stipulated in this paragraph until the principal and interest are paid off. For loans that are both overdue and embezzled, the penalty interest will be imposed on the part of loan overdue or used for other purposes at the penalty interest rate as agreed herein from the date on which the loan becomes overdue or is misappropriated, till both the principal calculated and interests are paid up. Where the loan is overdue and misappropriated at the same time, penalty interest will be imposed charged at a higher penalty interest rate. (2) Where the Borrower fails to pay For the interest and penalty interest that the borrower cannot pay on time, the interest settlement method as agreed stipulated in Para. paragraph 3 herein of this article shall apply, be used to calculate and collect compound interest will be calculated and collected at the penalty interest rate as agreed hereinstipulated in this paragraph. (3) Penalty interest rate ∎ ☐ Penalty interest rate for floating fixed rate loanloans A. Penalty Floating interest rate, the floating period is / month (filling instructions: for fixed-rate shall be subject to repricing according to loans with a loan term within one year (inclusive), the repricing periods as agreed in Parafloating period is the original loan term). 1 herein Repriced every float period from the day on which date of expiration or embezzlement. The re-pricing date is the loan becomes date of overdue or is misappropriated. The penalty interest rate repricing day shall be misappropriation on the corresponding day of the day on which the loan becomes overdue or is misappropriated in the reppricing re-pricing month. Where If there is no corresponding dayday in the current month, the last day of the current month shall be the penalty interest rate repricing dayre-pricing date. B. The penalty interest rate for overdue loan shall be 150 % loans is an additional /% of the basic base penalty interest rate as determined in Item C hereinof this paragraph , and that for misappropriated loan shall be 200 % of the basic penalty interest rate as determined in Item C hereinfor embezzled loans is an additional /% of the base penalty interest rate level. C. In the initial repricing first floating period, the basic base interest rate of the penalty interest is the borrowing rate agreed in Clause 1 of this article. After each full floating period, the base interest rate for the next floating period shall be ☐plus/☐minus (choose one)/ base point. ■Penalty interest rate for floating rate loans A. From the date of overdue or misappropriation, it will float according to the floating period stipulated in paragraph 1 of this article. The penalty interest repricing date is the corresponding date of the re-pricing month when the date of overdue or misappropriation falls. If there is no corresponding day in the current month, the last day of the current month will be the penalty interest repricing date. B. The penalty interest rate on overdue loans shall be 50% above the prime rate of penalty interest determined in subparagraph C of this paragraph, and the penalty interest rate on misappropriated loans shall be 100% above the prime rate of penalty interest determined in subparagraph C of this paragraph. C. The prime rate of penalty interest in the first floating period shall be the interest rate for of the loan applicable actually executed in the current period of overdue or misappropriated loan. When each repricing period expiresmisappropriation, and the basic prime rate of penalty interest rate of in the next floating period after each full floating period shall be repriced on the repricing day by date in accordance with the method as manner agreed in Para. paragraph 1 hereinof this Article.