; (vii) during the seventh year in which payments are due, the interest rate on the instrument shall increase to 9.5 percent for the remainder of the loan, beginning at the end of the seventh year; and (viii) after the last year in which payments are due under the amortization schedule, the interest rate on the instrument shall increase to 13 percent permanently, beginning at the end of such year. (B) Cure period Before any interest rate increase required under subparagraph (A), the financial institution shall provide notice to the borrower within five calendar days. The borrower shall have a 30-day cure period before such increase takes effect, beginning on the date of such notice. (C) Increased interest owed to Treasury With respect to any interest owed on a preferred equity instrument under subparagraph (A) above 2.5 percent, such interest shall be owed to the Department of the Treasury. (D) Treatment of financial institution failure to assess interest If the financial institution fails to assess interest required under this paragraph on the borrower, or fails to notify the borrower of such required interest for a period of 3 months or more, the financial institution shall only be eligible to receive half of the service fee described under subsection (d)(1) for the period of such failure. (d) Payments to financial institutions (1) Servicing fee The Secretary shall pay each financial institution that purchases a preferred equity instrument, the purchase of which is guaranteed under this section, an annual servicing fee in an amount equal to 1 percent of the outstanding amount on such instrument, paid annually. (2) Pay for origination (A) In general The Secretary shall pay a financial institution described under paragraph (1) at a rate, based on the covered amount, of— (i) 5 percent for a covered amount of not more than $350,000; (ii) 3 percent for a covered amount of more than $350,000 and less than $2,000,000