Common use of Application of Proceeds and Payments Clause in Contracts

Application of Proceeds and Payments. So long as the Discharge of First Lien Obligations has not occurred, any Common Collateral or proceeds thereof received by the First Lien Agent in connection with the sale or other disposition of, or collection on, such Common Collateral upon the exercise of remedies, shall be applied by the First Lien Agent to the First Lien Obligations in such order, if any, as is specified in the relevant First Lien Documents, PROVIDED HOWEVER that notwithstanding the foregoing, amounts received by the First Lien Agent or any other First Lien Claimholder in respect of Obligations outstanding under any First Lien Document shall be deemed for all purposes of this Agreement, including determination of Discharge of First Lien Obligations, to be applied first to payment and satisfaction of all outstanding First Lien Obligations and thereafter to payment of Obligations thereunder, if any, not constituting First Lien Obligations. Upon the Discharge of the First Lien Obligations, the First Lien Agent shall deliver to the Second Lien Agent (except as may otherwise be required by applicable law or any court order) any proceeds of Common Collateral held by it in the same form as received, with any necessary endorsements, or as a court of competent jurisdiction may otherwise direct, to be applied by the Second Lien Agent to the Second Lien Obligations in such order, if any, as is specified in the relevant Second Lien Collateral Documents.