Common use of Additional Administrative Fee Clause in Contracts

Additional Administrative Fee. In addition to the Default Rate provided for above, upon failure of any Borrower Party to deliver any of the financial statements, reports or other information required to be delivered to Lender as provided in Section 5.1 hereof upon their due dates, if any such failure shall continue for five (5) Business Days following notice thereof from Lender, Borrowers shall pay to Lender together with the scheduled monthly payments of principal and interest on the Loan, for each month or portion thereof that any such financial statement, report or other information remains undelivered, an administrative fee in the amount of $7,500. Borrowers agree that such administrative fee (i) is a fair and reasonable fee necessary to compensate Lender for its additional administrative costs under the circumstances, (ii) is not a penalty and (iii) is necessary to compensate Lender for increased costs and obligations to third parties in connection with the planned Securitization of the Loan.