Common use of Guarantee Fee Clause in Contracts

Guarantee Fee. (a) Rates in general. (1) For annual pe- riods, beginning with the date of the Security Agreement and prior to the delivery date of a Vessel or Shipyard Project, we shall charge a Guarantee Fee set at a rate of not less than 1⁄4 of 1 percent and not more than 1⁄2 of 1 per- cent of the excess of the average prin- cipal amount of the Obligations esti- mated to be outstanding during the an- nual periods covered by said Guarantee Fee over the average principal amount, if any, on deposit in the Escrow Fund during said annual period (Average Principal Amount of Obligations Out- standing).