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[[Default Rate - ISDA Provision|Default]] interest is one of those perennial things in finance and is generally a rate higher than the implied funding rate for the period and person in question. You might well ask — though one might, as the [[JC]] does, struggle heroically to not go there — whether an arbitrary loading on what ought to be a fair estimate of one’s actual carrying cost is not an unenforceable [[Penalty clause|penalty]], but hey, everyone does it. | [[Default Rate - ISDA Provision|Default]] interest is one of those perennial things in finance and is generally a rate higher than the implied funding rate for the period and person in question. You might well ask — though one might, as the [[JC]] does, struggle heroically to not go there — whether an arbitrary loading on what ought to be a fair estimate of one’s actual carrying cost is not an unenforceable [[Penalty clause|penalty]], but hey, everyone does it. | ||