Common use of Forfeit Clause in Contracts

Forfeit. 9.4.1 In case the Borrower fails to perform within the established deadline the duty to pay any amount it shall pay under the Finance Document, a forfeit shall be charged on such overdue amount during the period from the date (inclusive) following the due payment date to the actual payment date (inclusive) (both before and after rendering the relevant court decision) at the annual interest rate equal to the doubled interest rate effective on the due payment date of such overdue indebtedness for each day of delay. For the purposes of this Clause 9.4.1, the Parties agree that, if the overdue amount relates to: (A) The Outstanding Credit within any Instalment, then a reference to the “interest rate” relating to such overdue amount should be considered as a reference to the interest rate relating to such Instalment; (B) The interest, then a reference to the “interest rate” relating to such overdue amount should be considered as a reference to the Instalment, to which such interest rate applies; and (C) Any other amounts, then a reference to the “interest rate” relating to such overdue amount should be considered as a reference to the arithmetical average of the interest rates referring to Instalment 1 and Instalment 2. 9.4.2 The forfeit shall be paid by the Borrower within five Business Days after the relevant claim was sent by the Credit Manager. 9.4.3 The Parties agree that the Borrower’s payment of the forfeit provided for in this Article 9.4 shall by no means limit the Creditors’ rights to use any other remedies, including a right to claim reimbursement by the Borrower for the losses and expenses incurred due to the Borrower’s delay to the extent not covered by the forfeit. 9.4.4 The Parties confirm that no interest provided for by Article 9.3 (Interest Payment) shall accrue on the overdue amount, from which the forfeit provided for in this Article 9.4 is charged.