Original interest rate continues Clause Samples
The 'Original interest rate continues' clause establishes that the initial interest rate specified in an agreement will remain in effect for a certain period or under specific circumstances, even if other terms of the contract change. For example, if a loan is restructured or extended, this clause ensures that the borrower continues to pay the same interest rate as originally agreed, rather than a new or adjusted rate. Its core function is to provide predictability and stability for both parties by preventing unexpected changes to the cost of borrowing due to alterations in the contract.
Original interest rate continues. During any extension of the due date for payment of any principal or unpaid sum under this Agreement interest is payable on that principal at the rate payable on the original due date.