The interest clause sets out the rate of interest and the method of calculation of the interest. It can also set out the dates on which the interest must be paid. Many jurisdictions have laws that govern the maximum rate of interest that can be charged, and laws that regulate how the interest rate must be communicated. For example, in Canada, interest rates must be expressed as an annual percentage, but do not need to be expressed only as an annual percentage. If the interest rate is not expressed as an annual rate, a maximum annual 5% interest rate will apply.