Repayments of Interest Clause Samples

The 'Repayments of Interest' clause defines the borrower's obligation to pay interest accrued on a loan, separate from the repayment of the principal amount. Typically, this clause outlines the schedule, method, and calculation of interest payments, such as monthly or quarterly payments based on a specified interest rate. Its core practical function is to ensure that the lender receives compensation for the use of their funds over time, providing clarity on payment expectations and reducing the risk of disputes regarding interest obligations.

Repayments of Interest. The Borrower promises to pay to the Lender interest in arrears and at the rates as set forth in the Note, computed on the average daily debit balance in the Loan Account.