Interest and Security Sample Clauses
The 'Interest and Security' clause establishes the right of a party to charge interest on overdue payments and may also set out the creation of a security interest over certain assets to secure obligations under the agreement. In practice, this means that if a payment is late, the party owed money can charge an agreed-upon interest rate, and may also have a legal claim over specific property or assets until the debt is paid. This clause primarily functions to incentivize timely payment and provide the owed party with additional protection or recourse if the other party defaults.
Interest and Security. The Loan shall be non-interest bearing and unsecured.
Interest and Security. (a) Any loan made pursuant to this Article shall bear interest at a rate established by the Committee from time to time and communicated to the Members, which rate shall provide the Plan with a return commensurate with the interest rates charged by persons in the business of lending money for loans which would be made under similar circumstances.
(b) Any loan shall be made as an investment of a segregated loan fund to be established in the Trust Fund for the Member to whom the loan is made. Any loan shall be considered to come, first, from the Member's After-Tax Account, second, from the Member's Rollover Contribution Account, third, from the Member's Vested Interest in the portion of his Employer Contribution Account that is not invested in the Company Stock Fund, fourth, from the Member's Dow Transfer Account, and, finally, from the Member's Before-Tax Account. The Trustee shall fund a Member's segregated loan fund by liquidating such portion of the assets of the Accounts from which the Member's loan is to be made as is necessary to fund the loan and transferring the proceeds to such segregated loan fund. If a Member's Accounts are invested in more than one Investment Fund, the transfer shall be made pro rata from each such Investment Fund; provided however, that no loan shall be funded from the portion of a Member's Employer Contribution Account that is invested in the Company Stock Fund. The loan shall be secured by a pledge of the Member's segregated loan fund.
Interest and Security. A loan, guaranty, a surety contract, or other financial assistance under this Article may be with or without interest and may be unsecured or may be secured in any manner, including, without limitation, a grant of a security interest in membership units of the Company.
Interest and Security. (a) Any loan made pursuant to this Article shall bear interest at the prime rate of interest established by Texas Commerce Bank (Houston) on the date of the loan.
(b) Any loan shall be made as an investment of a segregated loan fund to be established in the Trust Fund for the Member to whom the loan is made. Any loan shall be considered to come from the Member's 401(k)
Interest and Security