Late Payment and Default Interest

Read the following  Late Payment and Default Interest section of a contract, then select the correct option from the list to complete (1) ….. to (10) ….. .

 Late Payment and Default Interest

 If the Buyer fails to make any payment when due under this Agreement, such unpaid amounts (the „Overdue Amounts”) shall ___1___ default interest at a rate of 6% per annum. Default interest shall be ___2___  from the due date of the unpaid amounts until full payment, including any accrued interest, is made. Such default interest shall compound on a monthly basis.

The Buyer acknowledges that the default interest is not a ___3___ but is intended as a reasonable estimate of the Seller’s damage arising from the Buyer’s failure to make ___4___ payments. The accrual of default interest does not ___5___ the Buyer of its obligation to pay the Overdue Amounts in full or limit any other ___6___  available to the Seller under this Agreement or the applicable law.

In addition to default interest, the Buyer shall be liable for all reasonable costs, fees, and expenses ___7___ by the Seller in collecting any overdue payments,___8___, but not limited to, reasonable attorneys’ fees, court costs, and collection agency fees. Such costs shall be ___9___ regardless of whether legal proceedings are initiated.

In the event of partial payment, any amounts paid by the Buyer shall first be applied to cover the accrued default interest, then any collection costs, and finally the ___10___ amount of the Overdue Amounts.

Now, press the START button to select the correct option from the list to complete (1) ….. to (10) ….. .