Punitive Interest Sample Clauses
The Punitive Interest clause establishes an increased interest rate or penalty fee that applies when a party fails to make payments on time. In practice, this clause typically stipulates that overdue amounts will accrue interest at a higher rate than the standard contractual rate, serving as a financial deterrent against late payments. Its core function is to incentivize timely payment and compensate the non-breaching party for the inconvenience and risk associated with delayed funds.
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Punitive Interest. 9.1 In the event the Borrower does not repay the loan pursuant to the agreed date (including the situation that the maturity date of the loan is accelerated), the Lender has the right to charge a daily interest based on the punitive interest rate; with respect to the interest that cannot be paid on schedule, the Borrower shall pay a compound interest calculated based on the punitive interest rate. The punitive interest rate shall be calculated in accordance with the interest set forth in Article 4 plus 50%.
9.2 The loan that the Borrower does not use in accordance with the contract, the Lender has the right to charge a daily interest calculated in accordance with the punitive interest rate; with respect to the interest that cannot be paid on schedule, the Borrower shall pay a compound interest calculated based on the punitive interest rate. The punitive interest rate shall be calculated in accordance with the interest set forth in Article 4 plus 50%.
9.3 In the event the interest of loan is adjusted in accordance with Article 4.2, the punitive interest rate shall be adjusted accordingly; its circle of adjustment shall be consist with the adjusted circle of interest.
Punitive Interest. (1) In case the Borrower fails to repay the loan on schedule or fails to use the loan for the purpose agreed herein, an punitive interest will be charged at the punitive interest rate provided in this Article for the overdue part or the part of the loan that fails to be used for the purpose intended herein, from the day when the repayment starts to be overdue or the day when the purpose fails to be observed up till the principal and interest have both been repaid in full. In case the overdue repayment and the failure to use the loan for the intended purpose occur at same time, the higher of the punitive interest rate shall prevail.
(2) In case the Borrower fails to pay the interest and punitive interest on schedule, a compound interest will be charged based on the punitive interest rate and settled in the manner agreed in the above Paragraph 3 of this Article.
(3) Punitive interest rate Punitive interest rate for the floating interest rate loan The punitive interest rate is to be floated at a floating period and in the manner agreed in Paragraph 1 of this Article. The punitive interest rate of overdue repayment is an additional 50% based on the applicable floating interest rate, and the punitive interest rate for failure to use the loan for the intended purpose shall be an additional 100% based on the applicable floating interest rate.