Explanation of Interest Payments to BD-5 Customers

Only those customers under Priority #2501, who were given a firm delivery date, are elegible to receive interest on their balance of payment.
Interest, at the rate of 10% per annum, will be computed as outlined below:
- Interest Starts on the firm delivery date, if balance of payment was submitted at least 90 days prior to delivery date, as specified in the letter.
- For those customers who remitted after the specified date, interest starts 90 days after receipt of balance of payment.
- A value will be placed on each of the five major packages, and interest will be pro-rated based upon the days of availability of each of these packages.
Interest will be figured on balance of payment only, not on the $200 deposit.
Since this payment of interest was initiated as a self-imposed penalty by Bede Aircraft, Inc. to the original purchaser, no interest will be paid on a purchase order which has been sold to another party.
The interest payment as outlined above is not to be confused with the 6% interest payments for the BD-5 installment payment agreement (which is explained in detail on the face of that form).