Application of Principal Payments. If on the date a principal payment is made with respect to the Advances, interest is calculated both on the basis of the Prime Interest Rate and the LIBOR Rate, then such payment shall be applied first to the Advances principal for which interest is calculated on the basis of the Prime Interest Rate (the "Prime Interest Rate Principal"). Only when the Prime Interest Rate Principal is fully paid shall the principal payment be applied to the LIBOR Advance(s) principal. If more than one LIBOR Advance is outstanding, the principal amount shall be applied to the LIBOR Advances in the order of maturity, with the LIBOR Advances with the shortest time to maturity paid first.
Appears in 2 contracts
Sources: Loan and Security Agreement (Vans Inc), Loan and Security Agreement (Vans Inc)