Common use of Penalties/Interest Clause in Contracts

Penalties/Interest. If the Contractor fails to pay the Subcontractor within the time allowed by Article X, the Subcontractor shall be entitled to receive interest on amounts due, accruing from the day after the required date for payment until the date on which payment is made. The applicable rate of interest shall be the legal rate in effect when the interest penalty accrues.

Penalties/Interest. If the Contractor fails to pay the Subcontractor within the time allowed by Article X, the Subcontractor shall be entitled to receive interest on amounts due, accruing from the day after the required date for payment until the date on which payment is made. The applicable rate of interest shall be the legal rate in effect when the interest penalty accrues.. SAMPLE