Application of Proceeds from Collateral Sample Clauses
The "Application of Proceeds from Collateral" clause defines how any funds or assets obtained from the sale or liquidation of collateral are to be distributed among the parties involved, typically in the event of a default. In practice, this clause outlines the order of payments, such as first covering costs and expenses related to the enforcement of security interests, then repaying outstanding principal and interest, and finally distributing any surplus to the debtor or other entitled parties. Its core function is to ensure a clear and fair process for allocating recovered amounts, thereby reducing disputes and providing certainty to both creditors and debtors regarding the handling of collateral proceeds.
Application of Proceeds from Collateral. All proceeds from each sale of, or other realization upon, all or any part of the Collateral by any Secured Party after an Event of Default arises shall be applied as follows:
(a) first, to the reimbursable expenses of the Administrative Agent incurred in connection with such sale or other realization upon the Collateral, until the same shall have been paid in full;
(b) second, to the fees and other reimbursable expenses of the Administrative Agent, the Swingline Lender and the Issuing Bank then due and payable pursuant to any of the Loan Documents, until the same shall have been paid in full;
(c) third, to all reimbursable expenses, if any, of the Lenders then due and payable pursuant to any of the Loan Documents, until the same shall have been paid in full;
(d) fourth, to the fees and interest then due and payable under the terms of this Agreement, until the same shall have been paid in full;
(e) fifth, to the aggregate outstanding principal amount of the Loans, the LC Exposure, the Bank Product Obligations and the Hedging Obligations that constitute Obligations, until the same shall have been paid in full, allocated pro rata among the Secured Parties based on their respective pro rata shares of the aggregate amount of such Loans, LC Exposure, Bank Product Obligations and Hedging Obligations;
(f) sixth, to additional cash collateral for the aggregate amount of all outstanding Letters of Credit until the aggregate amount of all cash collateral held by the Administrative Agent pursuant to this Agreement is at least 103% of the LC Exposure after giving effect to the foregoing clause fifth; and
(g) seventh, to the extent any proceeds remain, to the Borrower or as otherwise provided by a court of competent jurisdiction. All amounts allocated pursuant to the foregoing clauses third through fifth to the Lenders as a result of amounts owed to the Lenders under the Loan Documents shall be allocated among, and distributed to, the Lenders pro rata based on their respective Pro Rata Shares; provided that all amounts allocated to that portion of the LC Exposure comprised of the aggregate undrawn amount of all outstanding Letters of Credit pursuant to clauses fifth and sixth shall be distributed to the Administrative Agent, rather than to the Lenders, and held by the Administrative Agent in an account in the name of the Administrative Agent for the benefit of the Issuing Bank and the Lenders as cash collateral for the LC Exposure, such account to be administered in ac...
Application of Proceeds from Collateral. All proceeds from each sale of, or other realization upon, all or any part of the Collateral by the Lender after an Event of Default arises shall be applied as follows:
(a) first, to the reimbursable expenses of the Lender incurred in connection with such sale or other realization upon the Collateral, until the same shall have been paid in full;
(b) second, to the fees and other reimbursable expenses of the Lender then due and payable pursuant to any of the Loan Documents, until the same shall have been paid in full;
(c) third, to interest then due and payable under the terms of this Agreement and the Notes, until the same shall have been paid in full;
(d) fourth, to the outstanding principal amount of the Credit Facilities, in such order, manner and tenor as Lender shall determine in its sole absolute discretion, until the same shall have been paid in full to Lender;
(e) fifth, to all other Obligations until the same shall have been paid in full to Lender; and
(f) sixth, to the extent any proceeds remain, to the Borrower or other parties lawfully entitled thereto.
Application of Proceeds from Collateral. As to each Borrower, all proceeds received by the Administrative Agent from the sale or disposition of any of the Direct Collateral furnished by such Borrower pursuant to this Agreement or Indirect Collateral furnished by Guarantor pursuant to the Guaranty shall be applied by the Administrative Agent in the following order after receipt thereof:
Application of Proceeds from Collateral. All proceeds from each sale of, or other realization upon, all or any part of the Collateral by the Collateral Agent, the Administrative Agent or any of the Lenders after an Event of Default arises shall be applied in the manner set forth in the Collateral Agency Agreement.
Application of Proceeds from Collateral. All proceeds from each sale of, or other realization upon, all or any part of the Collateral by any Secured Party after an Event of Default arises shall be applied as follows:
Application of Proceeds from Collateral. All proceeds from each sale of, or other realization upon, all or any part of the Collateral by any Secured Party after an Event of Default arises shall be applied as follows: (a) first, to the reimbursable expenses of the Administrative Agent incurred in connection with such sale or other realization upon the Collateral, until the same shall have been paid in full; (b) second, to the fees, all amounts owed pursuant to Erroneous Payment Subrogation Rights, and other reimbursable expenses of the Administrative Agent, the Swingline Lender and the Issuing Banks then due and payable pursuant to any of the Loan Documents, until the same shall have been paid in full;
Application of Proceeds from Collateral. Any proceeds of the Shared --------------------------------------- Collateral shall be applied in accordance with the UK/US Intercreditor Agreement. All proceeds received by the Administrative Agent from the sale or disposition of any of the Collateral shall be applied by the Administrative Agent in the following order after receipt thereof:
Application of Proceeds from Collateral. All proceeds realized from the liquidation or other disposition of Collateral or otherwise received after the Maturity Date, whether by acceleration or otherwise, shall be applied, subject to the Second Lien Intercreditor Agreement:
(a) first, to payment or reimbursement of that portion of the Indebtedness constituting fees, expenses and indemnities payable to the Administrative Agent in its capacity as such;
(b) second, pro rata to payment or reimbursement of that portion of the Indebtedness constituting fees, expenses and indemnities payable to the Lenders;
Application of Proceeds from Collateral. Any proceeds received by the Collateral Agent for the benefit of the Secured Parties with respect to any of the Secured Obligations under and pursuant to the terms of the Guarantee and Security Agreement shall be applied in accordance with the terms thereof. Nothing contained in the Guarantee and Security Agreement shall be deemed to BLACKROCK ▇▇▇▇▇ CAPITAL CORPORATION NOTE PURCHASE AGREEMENT limit the rights of the holders of the Notes to accelerate the same and exercise remedies as contemplated by this Section 12; provided that such holder may not proceed against any Collateral except pursuant to the terms contained in the Guarantee and Security Agreement.
Application of Proceeds from Collateral. After the occurrence of and during the continuance of an Event of Default, any payment to the Lender hereunder or from the proceeds of any Collateral or any cash Collateral shall be applied as the Lender shall elect in its sole discretion.