Recovering an empty property grant

If a local authority's terms and conditions state, " the owner ... shall repay the grant together with compound interest calculated at such a reasonable rate as the authority detemine..."

What is considered a, " reasonable rate" ?

Forums: 
grants, loans, funding

I suspect deciding on the rate retrospectivley could be challenged.

 

If you are looking for a rate to put in the agreement, then we set our work in default rate at 7%, around the level for a commercial loan for the equivalent amount.