Common use of Application of Cash Collateral Clause in Contracts

Application of Cash Collateral. Lessor may apply Cash Collateral to pay Lessee Obligations only after the same become due pursuant to the terms of the Operative Documents, whether by acceleration or otherwise. The parties hereto do not intend for the Cash Collateral to constitute advance payment of any of the Lessee Obligations or liquidated damages nor do the parties intend for the Cash Collateral to increase the Lessee Obligations. Without limiting the generality of the foregoing, the parties acknowledge and agree that, upon the exercise by Lessee of the Marketing Option in accordance with the Purchase Agreement, the Lessee Obligations thereunder shall be limited as provided therein.

Application of Cash Collateral. Lessor may apply Cash Collateral to pay Lessee Obligations only after the same become due pursuant to the terms of the Operative Documents, whether by acceleration or otherwise. The parties hereto do not intend for the Cash Collateral to constitute advance payment of any of the Lessee Obligations or liquidated damages nor do the parties intend for the Cash Collateral to increase the Lessee Obligations. Without limiting the generality of the foregoing, the parties acknowledge and agree that, upon the exercise by Lessee of the Marketing Option in accordance with the Purchase AgreementAgreements, the Lessee Obligations thereunder shall be limited as provided therein.