Principal plus Interest Clause Samples
The 'Principal plus Interest' clause defines the obligation to repay not only the original amount borrowed (the principal) but also the additional amount accrued as interest over time. Typically, this clause specifies how interest is calculated—such as a fixed or variable rate—and the schedule for payments, which may be monthly, quarterly, or at maturity. Its core function is to ensure that the lender is compensated for the use of their funds and to provide clear terms for repayment, thereby reducing the risk of misunderstandings or disputes regarding the total amount owed.
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Principal plus Interest. Payments of principal plus interest due under this Note, if not sooner declared to be due in accordance with the provisions hereof, shall be made as follows:
(a) Consecutive monthly payments of interest accrued on the outstanding principal balance of the Loan commencing on October 1, 2013 (which shall include interest on the principal balance of this Note accruing during the period commencing on the date the proceeds of the Loan are disbursed by ▇▇▇▇▇▇ (“Closing Date”) and ending on the last day of the month in which the Closing Date occurs), and on the first (1st) day of each month thereafter, through and including the month in which the Maturity Date occurs, shall be due and payable.
(b) In addition to the interest payments due hereunder, Borrower shall make consecutive monthly deposits, in the amount designated on the schedule attached hereto as Exhibit A (the “Deposits”), due and payable commencing on October 1, 2014, and on the first (1st) day of each month thereafter, through and including the month in which the Maturity Date occurs. The Deposits required pursuant to this Section 3.1(b) shall be deposited into an account of the Borrower and pledged to the Lender in accordance with that certain Assignment and Pledge of Account – Additional Deposits of even date herewith by Borrower in favor of ▇▇▇▇▇▇.
(c) The unpaid principal balance of this Note, if not sooner paid or declared to be due in accordance with the terms hereof, together with all accrued and unpaid interest thereon and any other amounts due and payable hereunder or under any other Loan Document, shall be due and payable in full on the Maturity Date.