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Common use of Application of Payments to Principal and Interest Clause in Contracts

Application of Payments to Principal and Interest. All payments in respect of any honored drawing under a Letter of Credit shall include payment of accrued interest on the principal amount being repaid or prepaid, and all such payments shall be applied to the payment of interest before application to principal.

Appears in 2 contracts

Sources: Credit Agreement (Covanta Energy Corp), Credit Agreement (Danielson Holding Corp)

Related Clauses

  • Payments of Principal and Interest
  • Interpretation of principal and interest
  • Payments; Application of Payments
  • Application of Payments and Collections
  • Payments of Principal and Interest Prepayments Fees

Parent Clauses

  • General Provisions Regarding Payments
  • Amounts and Terms of Commitments and Loans
  • Repayments Prepayments and Reductions in Revolving Loan Commitments General Provisions Regarding Payments
  • Repayments and Prepayments General Provisions Regarding Payments
  • Repayments Prepayments and Reductions in Commitments General Provisions Regarding Payments

Sub-Clauses

  • Apportionment of Payments
  • Manner and Time of Payment
  • Notation of Payment
  • Payments on Business Days
  • ILLEGALITY OR IMPRACTICABILITY OF EURODOLLAR RATE LOANS
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