Common use of Application of Proceeds and Payments Clause in Contracts

Application of Proceeds and Payments. Any payments received at any time by Lessor or by Lessee from any insurer under any policy of insurance (other than liability insurance) shall be applied in the manner specified in Sections 11(m), 11(n) or 11(o) hereof as applicable. Any payments received at any time by Lessor or Lessee with respect to a Casualty Occurrence will be applied as follows: (i) if such payments are received as a result of a Casualty Occurrence with respect to the Aircraft, such payment up to the amount of the Casualty Value shall be paid to Lessor, or if Lessee has already paid Lessor the Casualty Value, such payment shall be applied by Lessor to reimburse Lessee; or (ii) if such payments are received as a result of a Casualty Occurrence with respect to an Engine which is being replaced pursuant to Section 10(b), such payments shall be paid over to, or retained by, Lessee if Lessee shall have fully performed the terms of Section 10(b) hereof.