Commitment Interest Fees Sample Clauses

The 'Commitment; Interest; Fees' clause defines the borrower's obligations to pay certain financial amounts to the lender, including commitment fees, interest on outstanding balances, and other applicable charges. Typically, this clause outlines how interest rates are calculated, when and how fees are assessed, and the timing of payments. For example, it may specify a percentage rate for interest, a flat or periodic fee for maintaining the loan commitment, and additional charges for late payments or administrative costs. Its core function is to ensure both parties clearly understand the financial costs associated with the loan, thereby preventing disputes and ensuring timely compensation for the lender.