Common use of Application of Payments or Proceeds Clause in Contracts

Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by ▇▇▇▇▇▇ will be applied in the following order of priority: (i) interest due under the Note; (ii) principal due under the Note; (iii) amounts due under Section 3. When one or more Periodic Payments has not been paid in full within 10 days after its scheduled due date, payments will be applied first to the current Periodic Payment due, second to delinquent Periodic Payments in the order in which they became due, third to late charges, fourth to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note. Voluntary prepayments will be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note will not extend or postpone the due date, or change the amount, of the Periodic Payments.