Common use of Default Interest Clause in Contracts

Default Interest. (a) In the event of default by the Issuer in the payment of interest payable by it under the Bonds on the relevant Interest Payment Date, the Issuer shall pay interest on such sum from the relevant due date to the date of actual payment at the rate which is the lesser of (i) 1.00 per cent. or (ii) such percentage of the Nominal Amount, that would result in the gross actuarial yield of a Bondholder between the issue date and the date of redemption not to exceed the yield on the Bonds on the Issue Date plus 0.75 per cent., above the rate provided for in Condition 6.1. (b) In the event of default by the Issuer in the payment of the outstanding Nominal Amount payable by it under the Bonds on the relevant due date, the Issuer shall pay interest on such sum from the Maturity Date to the date of actual payment at the rate which is 1.00 per cent. above the rate provided for in Condition 6.1.