Common use of Payment of accrued default interest Clause in Contracts

Payment of accrued default interest. Subject to the other provisions of this Agreement, any interest due under this Clause shall be paid on demand; and the payment shall be made to the Agent for the account of the Creditor Party to which the overdue amount is due. At any time prior to the occurrence of the Discharge of First Lien Obligations, all interest due under this Clause shall be payable by adding the amount thereof to increase the principal amount of the Loan then outstanding (and any interest so capitalized shall bear interest as otherwise provided hereunder and shall otherwise be treated as principal of the Loan for all purposes of the Finance Documents thereafter); provided however, that notwithstanding the foregoing, all accrued and unpaid interest shall be payable in cash on the Maturity Date.

Appears in 1 contract

Samples: Second Lien Loan Agreement (Eagle Bulk Shipping Inc.)

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