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"6. The borrowers agree that interest on the amounts advanced shall be paid to the Bank at the rates stated in the Third Schedule hereto, on the 31st March, 30th June, 30th September and 31st December in each year and also so long as the amounts advanced remain outstanding, the Bank shall be entitled to alter, modify or vary the said rates as the Bank may in its absolute discretion require or deem proper without giving any prior notice to the borrowers in that behalf and the Borrowers shall bound to and shall thereafter pay interest at such altered, modified and varied rates. The Borrowers agree that if quarterly interest or amounts advanced are not paid on due dates within the period stated in the Second Schedule hereto, the arrears shall bear overdue interest at the rates fixed by the Bank for such advance from time to time until the interest/amounts advanced as the case may be, are repaid by Borrowers and such interest shall be compounded at the end of each calendar quarter of the year. In respect of packing credit advances, advances against export incentives, duty draw back advances and export loans/advances, if the advances are not cleared out of export proceeds of the respective commodity export incentives, duty drawbacks, undrawn balances or surplus earned out of replenished licenses respectively, the Borrowers agree to pay interest on amounts advanced at penal interest rates in force in the Bank from time to time and such interest shall be compounded at the end of each calendar quarter of the year i.e., 31st March. 30th June, 30th September, 31st December each year, so long as the amounts remain outstanding. The Borrowers also agree to pay to the Bank the processing charges/service charges ECGC premium and out of pocket expenses, if any."