Accrue Daily Clause Samples
The "Accrue Daily" clause establishes that certain amounts, such as interest, fees, or other financial obligations, accumulate on a daily basis rather than at longer intervals. In practice, this means that the amount owed increases each day, often calculated based on a daily rate applied to the outstanding balance. This approach ensures that obligations are precisely tracked and fairly allocated over time, preventing disputes about the amount due and providing clarity for both parties regarding ongoing financial responsibilities.
Accrue Daily. Interest shall accrue daily on each Loan at the rate of twelve percent (12%) per annum, calculated on the basis of the actual number of days elapsed over a year of 360 days (the "Interest Rate"). Interest shall be payable on the Principal Amount Outstanding, monthly in arrears, on the first day of each month, commencing, for certainty, on the first day of the first month after the first Drawdown Date. For certainty, commencing on October 1, 2018, the Borrower shall make blended payments of principal and interest in accordance with Section 4(a).