(Assessment of Overdraft Interest)
Intraday overdrafts interest shall be assessed as the product of the amount and number of minutes for which the financial institution's account is overdrawn as follows:
(1) Interest on intraday overdrafts pledged by Classes 1 and 2 collateral is payable at a rate of the Bank's rate of accommodation with collateral in effect on that day.
(2) Interest on intraday overdrafts pledged by Class 3 collateral is payable at a rate of 1.5 times of the Bank's rate of accommodation with collateral in effect on that day.
For the first six months of the implement of these Directions, the intraday overdrafts pledge by Classes 1 and 2 collateral shall be free from interest charges, and the interest on intraday overdrafts pledged by Class 3 collateral shall be payable at the Bank's rate of accommodations with collateral. After six months, the Bank may adjust the interest rates according to the effectiveness and its service needs.
(Assessment of Penalty Interest)
If a financial institution fails to repay any intraday overdrafts by deadline , the Bank, besides keeping the original pledge, may on the following business day impose an penalty interest in the following manner, until the unpaid overdrafts is paid in full:
(1) The penalty interest on overdrafts pledged by classes 1 and 2 collateral is payable at a rate of 1.2 times of the Bank's rate of accommodations without collateral in effect on that day.
(2) The penalty interest on overdrafts pledged by classes 3 collateral is payable at a rate of 1.5 times of the Bank's rate of accommodations without collateral in effect on that day.
If a financial institution fails to repay any intraday overdrafts for two consecutive business days after the deadline, the penalty interest for the second business day shall be imposed in the following manner, until the unpaid overdrafts is paid in full, and the Bank may suspend the qualification of intraday overdrafts starting on the third business day:
(1) The penalty interest on overdrafts pledged by classes 1 and 2 collateral is payable at a rate of 2.4 times of the Bank's rate of accommodations without collateral in effect on that day.
(2) The penalty interest on overdrafts pledged by classes 3 collateral is payable at a rate of 3 times of the Bank's rate of accommodations without collateral in effect on that day.