Common use of Overdue Interest Clause in Contracts

Overdue Interest. If the Pipeline User fails to pay any amount by the date on which that amount is due, then the Pipeline User will pay the Tubridgi Parties interest on the unpaid amount to the extent that it remains unpaid from time to time. Interest will be calculated on a daily basis and will accrue at a rate which is two per cent higher than the Interest Rate. Accrued interest is payable to the Tubridgi Parties on demand. Interest not paid in the month in which it accrues will be capitalised at the end of that month and will itself bear interest in accordance with this sub- clause. This sub-clause will survive the termination of the Agreement.