Common use of Maximum Rate of Return Clause in Contracts

Maximum Rate of Return. Notwithstanding any provision of any Loan Document to the contrary, in no event will the aggregate “interest” (as defined in Section 347 of the Criminal Code (Canada)) payable under the Loan exceed the effective annual rate of interest lawfully permitted under that Section and, if any payment, collection or demand pursuant to the Loan in respect of “interest” (as defined in that Section) is determined to be contrary to the provisions of that Section, such payment, collection or demand will be deemed to have been made by mutual mistake of the Chargors and Chargee and the amount of such payment or collection shall either be applied to the Loan Indebtedness (whether or not due and payable), and not to the payment of interest (as defined in Section 347 of the said Criminal Code), or be refunded to the Chargors at the option of the Chargee. For purposes of each Loan Document, the effective annual rate of interest will be determined in accordance with generally accepted actuarial practices and principles over the Term of the Loan on the basis of annual compounding of the lawfully permitted rate of interest. In the event of dispute, a certificate of a Fellow of the Canadian Institute of Actuaries appointed by the Chargee will be conclusive for the purposes of such determination.

Maximum Rate of Return. Notwithstanding any provision of any Loan Document to the contrary, in no event will the aggregate “interest” (as defined in Section 347 of the Criminal Code (Canada)) payable under the Loan exceed the effective annual rate of interest lawfully permitted under that Section 347 and, if any payment, collection or demand pursuant to the Loan in respect of “interest” (”, as defined in that Section) Section 347, is determined to be contrary to the provisions of that said Section, such payment, collection or demand will be deemed to have been made by mutual mistake of the Chargors Borrower and Chargee Lender and the amount of such payment or collection shall either be applied to the Loan Indebtedness (whether or not due and payable), and not to the payment of interest (interest, as defined in Section 347 of the said Criminal Code), or be refunded to the Chargors Borrower at the option of the ChargeeLender. For purposes of each Loan Document, the effective annual rate of interest will be determined in accordance with generally accepted actuarial practices and principles over the Term term of the Loan on the basis of annual compounding of the lawfully permitted rate of interest. In the event of dispute, a certificate of a Fellow of the Canadian Institute of Actuaries appointed by the Chargee Lender will be conclusive for the purposes of such determination.