Interest Rate Terms Clause Samples
The Interest Rate Terms clause defines how interest will be calculated and applied to amounts owed under the agreement. It typically specifies the applicable interest rate, the method of calculation (such as simple or compound interest), and the frequency of interest accrual or payment. For example, it may state that overdue payments will accrue interest at a specified annual percentage rate until paid. This clause ensures both parties understand the cost of borrowing or the penalty for late payments, thereby promoting clarity and reducing disputes over financial obligations.
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Interest Rate Terms. The interest rates set forth above are annual rates (interest to be calculated on the basis of a 360 day year for the actual number of days elapsed) and are variable and will be adjusted monthly. For any month, Prime shall be greater of: (i) the highest prime rate of interest announced during such month by the Wall Street Journal or such money center bank as Textron Financial shall select from time to time, or (ii) Minimum Prime of 5.5% ("Minimum Prime"). Application of payments to accrued interest and loan balances, other than as to immediately available funds, may occur up to two business days after such payments are deposited into Textron Financial's account to allow for clearance of checks and other similar instruments and the obtaining of good funds. Payments owing from the Company, the Parent or any affiliate to Textron Financial under this Program Agreement, the Repurchase Agreement (as defined below), the Risk Pool or under any other agreement between the Company and Textron Financial that are no paid, when due, shall bear interest at Prime + 4% until paid in full and such interest shall be payable upon demand. Textron Financial will send Builders monthly statements for the payment of interest, and will send billing statements to the Company monthly for any amounts to be paid by the Company.