(1.25 X 12 = 15 % per annual) The interest exceeds that allowable under the Civil and commercial Code, hence it should be adjusted to instead be 0.625% per months or 7.5% per annum, we strongly recommended the wording should be amended as “Late payment of any service fee shall be subject to penalty at the rate of (0.625% per months or 7.5% per annum) on the unpaid amount until such amount is fully paid by the Client.”