Common use of 13Interest Clause in Contracts

13Interest. (a) The Advances comprising each Revolving Advance shall bear interest at a rate per annum equal to the greater of: (i) the Prime Rate plus 1.00%, and (ii) 4.00%. (b) [Reserved]. (c) Notwithstanding the foregoing, after the occurrence and during the continuance of an Event of Default, the Lender may, at its option, by notice to the Borrowers, declare that (i) all Loans shall bear interest at the Default Rate or (ii) in the case of any other amount outstanding hereunder, such amount shall accrue at 3.50% per annum plus the rate applicable to such fee or other obligation as provided hereunder. (d) Accrued interest on each Advance (for Advances, accrued through the last day of the prior calendar month) shall be payable in arrears on each Interest Payment Date for such Loan and, in the case of Revolving Advances, upon termination of the Revolving Commitment; provided that (i) interest accrued pursuant to paragraph (c) of this Section shall be payable on demand, and (ii) in the event of any repayment or prepayment of any Loan, accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment. (e) All interest hereunder shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed (including the first day but excluding the last day). The Prime Rate shall be determined by the Lender, and such determination shall be conclusive absent manifest error.