Prorated Interest Payment Sample Clauses
A Prorated Interest Payment clause defines how interest is calculated and paid for a period that is shorter than a full interest period, typically when a loan is issued or repaid on a date that does not align with the regular payment schedule. In practice, this means that if a borrower repays a loan early or receives funds partway through an interest period, the interest owed is calculated only for the actual number of days the funds were outstanding, rather than for the entire period. This clause ensures fairness by aligning interest payments with the precise time the principal is in use, preventing overpayment or underpayment of interest due to partial periods.
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Prorated Interest Payment. Notwithstanding anything to the contrary in this Agreement or otherwise, after the Closing, Purchaser shall pay to Seller the Accrued Interest Amount within ten (10) days after Borrower’s payment of same to Purchaser under the Note, by wire transfer of immediately available funds pursuant to separate written instructions to be provided by Seller. Purchaser’s payment of the Accrued Interest Amount shall not affect the Purchase Price. This Section 6 shall survive the Closing.