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4.2 Where financing by Canada of the program is wholly or partly on a loan basis, the Company will repay the loan to Canada with interest as follows:
(a) Simple interest with respect to all payments made by Canada shall be calculated from the date of each payment at the Bank of Canada rate plus one per cent (1%). The rate set at the beginning of each quarter will apply during that quarter. Interest accrued to March 1, 1987, shall be capitalized as at said date and shall be added to the principal amount of each payment and the total amount shall be deemed to be principal for the purposes of paragraphs (b) and (c). The principal amounts of each payment, including the accrued interest, shall be treated as a single sum and simple interest shall be charged on such single sum at a rate computed as a weighted average of all the rates borne by each of the payments comprising such single sum
