Common use of Interest and Penalties Clause in Contracts

Interest and Penalties. If any payment of Rent shall remain unpaid for more than thirty (30) days beyond the due date thereof, Tenant shall pay to Landlord a late charge equal to four percent (4%) of any Rental not paid when due and interest at a rate equal to the Prime Rate (as hereinafter defined) (the “Default Rate”), such interest to accrue from the due date of such payment to the date of actual payment thereof. Such late charge and interest shall constitute Rent hereunder and shall be due and payable by Tenant on demand. No failure by Landlord to insist upon strict performance by Tenant of its obligations to pay late charges shall constitute a waiver by Landlord of its rights to enforce the provisions of this Article 2 in any instance thereafter occurring. This provision shall not be construed in any way to extend the grace period or notice period provided for in this Lease. As used herein “Prime Rate” shall mean the rate reported by The Wall Street Journal (or its successors) as the so-called “prime rate”.