Common use of Application of Payments During Existence of Event of Default Clause in Contracts

Application of Payments During Existence of Event of Default. Any amount referred to in this Section 3.05 which is payable to or retainable by the Company shall not be paid to or retained by the Company, if at the time of such payment or retention a Special Default or an Event of Default shall have occurred and be continuing, but shall be held by or paid over to the Secured Party as security for the Obligations and invested pursuant to Section 6.01. Upon the earlier of (a) such time as there shall not be continuing any such Special Default or Event of Default or (b) the termination of this Mortgage in accordance with Section 7.01, such amount, and any interest realized thereon pursuant to Section 6.01 hereof, shall be paid over to the Company to the extent not previously applied in accordance with the preceding sentence, provided that if at the time of the termination of this Mortgage a “Special Default” or “Subordinated Event of Default” (as such terms are defined in the Subordinated Spare Parts Mortgage) has occurred and is continuing, then such amount, and any such interest, not so previously applied shall be held or paid over to the Subordinated Secured Party as security under the Subordinated Spare Parts Mortgage and/or Subordinated Engine Mortgage in such proportion as the Subordinated Secured Party may elect.

Application of Payments During Existence of Event of Default. Any amount referred to in this Section 3.04 or Section 3.05 which is payable to or retainable by the Company (or any Lessee) shall not be paid to or retained by the CompanyCompany (or such Lessee), if at the time of such payment or retention a Special Default or an Event of Default shall have occurred and be continuing, but shall be held by or paid over to the Secured Party as security for the Obligations and invested pursuant to Section 6.01Obligations. Upon the earlier of (a) such time as there shall not be continuing any such Special Default or Event of Default or (b) the termination of this Mortgage in accordance with Section 7.01, such amount, and any interest realized thereon pursuant to Section 6.01 hereof, shall be paid over to the Company (or such Lessee) to the extent not previously applied in accordance with the preceding sentence, provided that if at the time of the termination of this Mortgage a “Special Default” or “Subordinated Event of Default” (as such terms are defined in the Subordinated Spare Parts Engine Mortgage) has occurred and is continuing, then such amount, and any such interest, not so previously applied shall be held or paid over to the Subordinated Secured Party as security under the Subordinated Spare Parts Mortgage and/or Subordinated Engine Mortgage in such proportion as the Subordinated Secured Party may electMortgage.