Common use of Balloon Payment Clause in Contracts

Balloon Payment. Parties hereby agree that in the event the BUYER opts to make a balloon payment, the following shall apply: If made within the Insert year here e.g. 1st put N/A if not applicable year to insert year here e.g. 2nd put N/A if not applicable year of the Contract Period, there shall be no interest on the principal amount. If made after the Insert year here put N/A if not applicable year of the Contract Period, the INTEREST RATE for the year when the balloon payment is made shall apply in addition to the principal amount.