Common use of Default Penalty Clause in Contracts

Default Penalty. (a) Without limiting the remedies available to IFC under this Agreement or otherwise, if the Borrowers fail to make any payment of principal or interest (including interest payable pursuant to this Section) or any other payment when due: (i) the Borrowers shall pay interest on the amount of that payment due and unpaid, at the rate which shall be the sum of two per cent (2.0%) per annum and the interest rate determined in accordance with Section 3.03 (Interest); and that interest shall accrue from the date the relevant payment became due until the date of actual payment (as well after as before judgment), and shall be payable on demand or, if not demanded, on each Interest Payment Date thereafter; and (ii) in addition to the default rate interest payable by the Borrowers in Section 3.04(i) above, the Borrowers shall pay all costs and expenses incurred by IFC with respect to the funding of IFC’s payment obligations to holders of the Reference Bond, including, but not limited, to any U.S. Dollar or Renminbi borrowing costs and the costs of any hedging arrangements (in case that such costs were incurred in U.S. Dollar or any currency other than the Loan Currency, the payment shall be made in the Loan Currency). (b) If the Borrowers breach their obligation to fund and maintain the Sinking Fund Account pursuant to Section 6.01(d) below, the Borrowers shall pay to IFC, a penalty of two per cent (2.0%) per annum on the outstanding principal of the Loan (“Sinking Fund Penalty”). The Sinking Fund Penalty shall accrue from the date on which such breach occurred until the date on which such breach is rectified. The Sinking Fund Penalty shall be payable annually with the first payment due on the first Interest Payment Date immediately following the breach.

Default Penalty. (a) Without limiting the remedies available to IFC under this Agreement or otherwise, if the Borrowers fail to make any payment of principal or interest (including interest payable pursuant to this Section) or any other payment when due: (i) the Borrowers shall pay interest on the amount of that payment due and unpaid, at the rate which shall be the sum of two per cent (2.0%) per annum and the interest rate determined in accordance with Section 3.03 (Interest); and that interest shall accrue from the date the relevant payment became due until the date of actual payment (as well after as before judgment), and shall be payable on demand or, if not demanded, on each Interest Payment Date thereafter; and (ii) in addition to the default rate interest payable by the Borrowers in Section 3.04(i) above, the Borrowers shall pay all costs and expenses incurred by IFC with respect to the funding of IFC’s payment obligations to holders of the Reference Bond, including, but not limited, to any U.S. Dollar or Renminbi borrowing costs and the costs of any hedging arrangements (in case that such costs were incurred in U.S. Dollar or any currency other than the Loan Currency, the payment shall be made in the Loan Currency). (b) If the Borrowers breach their obligation to fund and maintain the Sinking Fund Cash Collateral Account pursuant to Section 6.01(d) below, the Borrowers shall pay to IFC, a penalty of two four point five per cent (2.04.5%) per annum on the outstanding principal of the Loan (“Sinking Fund Cash Collateral Penalty”). The Sinking Fund Cash Collateral Penalty shall accrue from the date on which such breach occurred until the date on which such breach is rectified. The Sinking Fund Cash Collateral Penalty shall be payable annually with the first payment due on the first Interest Payment Date immediately following the breach.