Common use of Application of Designated Prepayments Clause in Contracts

Application of Designated Prepayments. Designated Prepayments shall be allocated and applied to the Obligations as follows: (A) the amount of each Designated Prepayment shall be applied ratably to the outstanding Revolving Loans, each application being made first to the Revolving Loans which are Base Rate Loans until paid in full and then to Revolving Loans which are Eurocurrency Rate Loans, with those which have earlier expiring Eurocurrency Rate Interest Periods being repaid prior to those which have later expiring Eurocurrency Rate Interest Periods, until paid in full; provided that the U.S. Borrower may elect to deposit with the Agent, as Cash Collateral and subject to the provisions of Section 4.05, amounts that would otherwise be required to be applied to Eurocurrency Rate Loans hereunder until the end of the Eurocurrency Rate Interest Period applicable to such Eurocurrency Rate Loans, at which time the required application shall be made by the Agent; (B) following the payment in full of the Revolving Loans, the remaining balance of each Designated Prepayment shall be applied to the Reimbursement Obligations until paid in full; and (C) thereafter, the remaining balance of each Designated Prepayment shall be applied to the Swing Loans then outstanding until paid in full.