Common use of Payment Default Clause in Contracts

Payment Default. If the CUSTOMER has not made payment by the end of the payment period, it will auto- matically be in default of payment. No payment reminder on our part is required. In the event of default in payment, we may charge interest on arrears pursuant to § 288 of the German Civil Code at the current rate of 9 % above the prime rate plus a flat fee pursuant to § 288 (5) of the German Civil Code (currently EUR 40).