Penalty Rate Clause Samples
A Penalty Rate clause establishes the interest rate or fee that will be charged if a party fails to make payments or fulfill financial obligations on time. Typically, this clause specifies the percentage rate applied to overdue amounts and outlines how and when the penalty will accrue, such as daily or monthly compounding. Its core practical function is to deter late payments and compensate the non-breaching party for the inconvenience or loss caused by delayed performance.
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Penalty Rate. If Your Account is more than 60 days past due, subject to applicable law, the Monthly Periodic Rate applicable to Your entire balance of transactions existing at that time and in the future will increase to 1.50% (corresponding ANNUAL PERCENTAGE RATE 18.00%). During the six month period following such an increase, if We receive the first six consecutive required minimum periodic payments when due, the rate applicable to the balance of transactions that occurred prior to such increase will be returned to the standard rate that would have otherwise been in effect. PAYMENT ALLOCATION. In general, your minimum payment to interest and fees first before applying it to principal balances. If your account has balances with a promotional APR, the minimum payment will be applied to the balance with the lowest APR before balances with a higher APR. Any payment amount in excess of the minimum payment will be allocated to the balance OVERDRAFT PROTECTION. We may transfer funds to Your share draft account by an advance on Your Account, subject to this provision, to clear any overdraft on Your share draft account. Such transfers will be made in multiples of $100.00 (or in such increments as We may from time to time determine). Whether or not such transfers occur will be controlled by this Agreement. In any event, You hold Us harmless for any and all liability which might otherwise arise if the transfer does not occur. Overdraft protection automatically ceases if this Agreement is ever cancelled or terminated or Your Account is in default.
Penalty Rate. If, on this account or on any account that you have with us, you make any payment that is returned or your total Minimum Periodic Payment is not paid within 29 days of the payment due date (within 27 days during the February credit reporting period or 28 days for February reporting period in leap years), twice within any 12 month period, the ANNUAL PERCENTAGE RATE (APR) will be increased to the lesser of 19.9% or the highest rate allowed by law, unless this increase in APR as a result of default is invalidated by a state statute that is applicable notwithstanding federal law, 12 U.S.C. 1785(g)(1). The Daily Periodic Rate (DPR) in this event shall be the APR divided by 365 (366 in a leap year). If your DPR (and corresponding APR) is increased as described, it may be subsequently reduced at our discretion after a minimum of twelve months at which time it is determined that no payment for any amounts owed BECU has been late during the 12-month period, and your other accounts with BECU are in good standing (current and non-negative). Rate changes shall be effective beginning on the first day on the next Billing Cycle following the late payment or determination. A loan whose rate is reduced will be subject to subsequent increases should future payment be missed in a manner described within this section. If the DPR and corresponding APR increase, the FINANCE CHARGE will increase and your minimum payment may be higher.
Penalty Rate. The penalty rate may apply if you do not make your total minimum payment by the payment due date and will continue to apply as provided in this section. As required by law, we will provide you with advance notice if we are going to apply the penalty rate to your account and we will tell you when the penalty rate will apply.
a. What is the Penalty Rate? The daily penalty rate will be .08216% (APR 29.99%).
Penalty Rate. All time worked on a Sunday shall be paid at the rate of double time.
Penalty Rate. If we do not receive a payment within 60 days of the date it is due, a penalty Annual Percentage Rate of 17.99% will be applied to all balances (current and future) on your Account. If you make six consecutive payments on or before their due dates, we will adjust your Annual Percentage Rate to the standard rate that would otherwise apply to your Account pursuant to this Agreement.
Penalty Rate. If You are 30 but not more than 60 days past due twice during any 12-consecutive-month period, or 60 days past due at any time, subject to applicable law, the Daily Periodic Rate applicable to future transactions will increase to a fixed periodic rate of 0.049315% (corresponding ANNUAL PERCENTAGE RATE 18.00%). If You are more than 60 days past due, subject to applicable law, the Monthly Periodic Rate applicable to Your entire balance of transactions existing at that time and in the future will increase to a fixed periodic rate of 0.049315% (corresponding ANNUAL PERCENTAGE RATE 18.00%). During the six-month period following the effective date of the increase that occurred as a result of Your being more than 60 days past due, upon receipt of the first six consecutive required minimum periodic payments when due, the rate applicable to the balance of transactions that occurred prior to the initial increase will be returned to the standard rate that would have otherwise been in effect.
Penalty Rate. The Borrower shall p▇▇ ▇o the Bank interest on the overdue BD at a Penalty Rate calculated at the rate of one point zero per centum per annum (1.0% p.
Penalty Rate. If your account meets the Penalty APR criteria as specified in your Credit Terms provided at the end of a billing cycle, then the penalty rate may apply to the existing balance on your Account and to all new balance transfers, purchases and cash advances, as permitted by law. Any penalty rate will apply in lieu of the purchase rate, balance transfer rate or the cash advance rate set forth in your Credit Terms. The penalty rate set forth in your Credit Terms may vary based on the Index Rate plus a stated percentage rate (“Penalty Margin”). If your Account includes a penalty rate, the penalty rate is shown on your Credit Terms or other communication we send to you.
Penalty Rate. If (i) a payment is more than 60 or more days past due, or (ii) a payment is dishonored, the Monthly Periodic Rate to be used to compute the finance charge on Credit Purchases, Cash Advances, and Balance Transfers will be 1.658%, which corresponds to an ANNUAL PERCENTAGE RATE of
Penalty Rate. The parties hereto do hereby agree that "Penalty Rate" as used in this Lease is defined as two percent (2%) above the rate of interest under the Loan in effect from time to time. For the purpose of computing the "Penalty Rate" in this Agreement, changes in the prime rate shall be effective on the date of each change.