Repayment Prepayment Charges and Commitment Clause Samples

Repayment Prepayment Charges and Commitment. 6.1.1 The Borrower shall repay to the Bank at the place and as per the period stipulated in the Sanction Letter / Individual Facility Sanction Letter (Due Dates) the said Facilities amount together with interest thereon at the rate stipulated therein. The detailed repayment schedule shall be so advised by the Bank to the Borrower from time to time. Provided that if the amount of the loan actually disbursed is less than the Facilities amount then the amount of instalments payable as aforesaid shall be reduced pro-rata but the same shall be payable on the stipulated days mentioned in the Sanction Letter / Individual Facility Sanction Letter or the period of repayment shall be correspondingly reduced as the Bank may decide in its discretion and notify the Borrower in writing. In the event of any revision, modification, enhancement or reduction the amount of instalments and the dates of repayment notified by the Bank to the Borrower shall be deemed to be substituted herein in place and stead of the amount of instalments and dates of payment mentioned in the Sanction Letter / Individual Facility Sanction Letter, and this Agreement shall be read and construed accordingly 6.1.2 If any payment under this Agreement is required to be made on or before a day which is not a Business Day or within a period which ends on a day which is not a Business Day then the Borrower shall be required to make the payment on the immediately preceding Business Day. Provided however, that the Borrower shall pay interest at the rate specified in the Sanction Letter / Individual Facility Sanction Letter with monthly rests or such other rests upto the date when payment is due or payment was actually due. 6.1.3 No intimation shall be given to the Borrower regarding its obligation to pay the instalments of principal amount or the interest periodically as mentioned in the Sanction Letter / Individual Facility Sanction Letter. The Borrower agrees that it shall be entirely its responsibility to ensure prompt and regular payment of the principal amount and the interest and all other amounts payable by the Borrower to the Bank on the dates and in the manner provided in the Sanction Letter / Individual Facility Sanction Letter. 6.1.4 The Bank shall be entitled to recompute / recalculate the instalments/repayment schedules if the Bank varies the interest rate and/or upon the occurrence of any event which in the opinion of the Bank necessitates a recomputation / recalculation of the same