Common use of Late Settlement Clause in Contracts

Late Settlement. 16.3.1 If you fail to pay the amount due on your dealing account, interest will be payable by you at a typical unauthorised overdraft rate from the due settlement date. This interest rate will be applicable to all debits arising on your account at NatWest unauthorised overdraft rates. Where sales proceeds have been reinvested, interest calculated on a similar basis will be payable by you if you fail to deliver stock and transfer deeds by the due settlement date. Any additional expenses incurred will also be payable by you. 16.3.2 Late settlement will also result in an additional charge of £20.00 per event and may be interpreted as a breach of your contract. We retain the unconditional right of sale of any investments in the account where funds have not been paid to us by the end of the due date. If we are forced to sell investments to meet your obligations dealing commission will be charged at our standard dealing rates.