Template:GTMA Master Agreement 2004 8.4

8.4 Interest

8.4.1 If a Party fails to pay to the other Party any amount due by the Due Date as set out in this Agreement (or otherwise determined by any dispute resolution process), interest shall be payable on that amount at an annual rate equal to the base lending rate for sterling of [SPECIFY APPLICABLE BANK] applicable from time to time plus 3% compounded monthly from and including the Due Date to but excluding the date payment is made.

8.4.2 If, following the resolution of a dispute or otherwise to correct any mistaken overpayment or underpayment made in good faith, one Party is required to pay an amount to the other Party, interest shall be payable on that amount at an annual rate equal to the base lending rate for sterling of [SPECIFY APPLICABLE BANK] applicable from time to time plus 1% compounded monthly from the date when the amount would have been paid or not paid (as applicable) if the dispute, overpayment or underpayment had not occurred to but excluding the date payment is made.

8.4.3 If the rate in clause 8.4.1 or 8.4.2 ceases temporarily or permanently to be published then the Party owed money may substitute a rate which it considers in good faith to be equivalent to that rate published by a London clearing bank.