7. INTEREST ON EXCESS AND ARREARS
(a) Without prejudice to the provisions of Events of Default (as defined in this Agreement) and the rights of the Bank hereunder, if at any time during the continuance of the Facility(ies), the amount drawn by the Borrower from the Bank is in excess of the Facility(ies) committed by the Bank under the Agreement and/or if any sum payable by the Borrower under the Agreement is not paid on the date on which it is due in accordance with the provisions of the Agreement and whether demand has been made or not on the Borrower and whether notice has been given or not to the Borrower to repay the same, the Borrower shall pay to the Bank interest on such excess/arrears for the period during which the account is in excess/arrears at the rate of ten per cent (10%) per annum over the then subsisting rate of interest payable by the Borrower on the Facility(ies) . The Bank may by notice change this rate of interest so payable, and any such change will not prejudice in any way the Banks right to require payment of such interest when due.
The Borrower acknowledges and agrees that any amounts in excess and arrears do not form part of Credit Facility(ies) (as defined under the Banking Act) and that the aforesaid rate of interest represents a reasonable pre-estimate of the loss to be suffered by the Bank in funding the default on the Borrower’s part.
(b) If any sum payable by the Borrower hereunder is not paid on the date on which it is due in accordance with the provisions of the Agreement, and demand having been made, the Bank demands repayment of the same, or if any sum due and payable by the Borrower under any judgment of any Court in this connection, is not paid on the date of such judgment, the Borrower shall pay additional interest on such sum for the period beginning on such due date or, as the case may be, the date of such judgment until payment is received by the Bank in full at the rate of ten per cent (10%) per annum over the then subsisting rate of interest payable by the Borrower on the Facility(ies). The Bank may by notice change this rate of interest so payable, and any such change will not prejudice in any way the Banks right to require payment of such interest when due.