Common use of Lawful Interest Clause in Contracts

Lawful Interest. In no event shall the amount of interest due or payable hereunder exceed the maximum rate of interest allowed by law. In the event any such payment is inadvertently paid by Maker or received by Holder, then such excess sum shall be credited as payment of principal, unless the Maker shall notify the Holder in writing that the Maker elects to have such excess sum returned to him. The parties intend that Maker shall not pay and Holder shall not receive directly, or indirectly, in any manner whatsoever, interest in excess of that which may be legally paid by the Maker under applicable law.