Finance Deals & Syndicated Lending · glossary
Extra interest on an overdue sum, one per cent above the normal rate, from the due date until payment. It prices a riskier debt rather than punishing the borrower, so English courts enforce it. Clause 8.3 · Chapter 6
Explained in Chapter 6, Interest, Fees and the Cost of Money, of Finance Deals & Syndicated Lending.
If Atlas pays late, the price of money goes up. Under clause 8.3, an overdue sum carries default interest from its due date until it is paid. The rate is one per cent above the normal rate. Default interest is payable at once and, if unpaid, is added to the debt, so interest then runs on interest.Read Chapter 6, Interest, Fees and the Cost of Money →
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