Delayed Payment Charge Clause Samples
A Delayed Payment Charge clause establishes a financial penalty or interest that accrues when a payment is not made by its due date. Typically, this clause specifies the rate of interest or a fixed fee that will be applied to overdue amounts, and may outline the calculation method and frequency of such charges. Its core function is to incentivize timely payments and compensate the payee for the inconvenience or financial impact of late payments.
Delayed Payment Charge. Lessee shall pay to Lessor interest upon the amount of any Daily Rent, Monthly Rent or other sums not paid by Lessee when due and owing under this Lease Agreement, from the due date thereof until paid, at the rate of one and one half (1-1/2) percent per month, but if such rate violates applicable law, then the maximum rate of interest allowed by such law.