Common use of Application of Earnings Clause in Contracts

Application of Earnings. Each Shipowner undertakes with the Lenders that money from time to time credited to, or for the time being standing to the credit of, the Earnings Account shall, unless and until an Event of Default or Potential Event of Default shall have occurred (whereupon the provisions of Clause 16.1 shall be and become applicable), be available for application in the following manner: (a) in or towards meeting the costs and expenses from time to time incurred by or on behalf of the relevant Shipowner in connection with the operation of the Ship owned by it; (b) in or towards making payments of all amounts due and payable by the Borrowers under this Agreement other than the payments of principal and interest pursuant to Clauses 7.1 and 4.1; (c) in or towards making the transfers to the Retention Account required pursuant to Clause 17.3; and (d) as to any surplus from time to time arising on the Earnings Account following application as aforesaid, to be paid to the relevant Shipowner or to whomsoever it may direct.