Application of Proceeds of Sale of Collateral Clause Samples

The "Application of Proceeds of Sale of Collateral" clause defines how the money received from selling collateral is distributed among parties after a default or enforcement event. Typically, this clause outlines a specific order of priority, such as first covering enforcement costs, then repaying principal and interest owed to the lender, and finally returning any surplus to the borrower. Its core function is to ensure a clear, predetermined process for allocating sale proceeds, thereby reducing disputes and providing certainty to both lenders and borrowers regarding the handling of recovered funds.
Application of Proceeds of Sale of Collateral. The proceeds of any sale made under or by virtue of this Article X together with any other sums which then may be held by the Lender under this Agreement as part of the Collateral or the Proceeds thereof, whether under the provisions of this Article X or otherwise, shall be applied by the Lender as follows:
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Application of Proceeds of Sale of Collateral. Except as otherwise provided by law, the proceeds realized from the sale of any of the Collateral shall be applied by Secured Party as follows: First, to the reasonable costs and expenses of every kind incurred in connection with or incidental to the care, safekeeping or otherwise of any and all of the Collateral or in any way relating to the rights of the Secured Party hereunder, including reasonable attorney's fees and legal expenses; Second, solely with respect to the proceeds from any sale of the GVS Shares, to the payment of the Private Placement Notes; Third, to the satisfaction of the Obligations; Fourth, to the payment of any other amounts required by applicable law; and Fifth, to Debtor to the extent of the surplus proceeds, if any. In the event that the proceeds realized from the sale as aforesaid are insufficient to pay all amounts to which Secured Party is legally entitled, Debtor will be liable for the deficiency, together with interest thereon, at the rate of twelve (12%) percent per annum, and the reasonable fees of any attorneys employed by Secured Party to collect such deficiency.
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Application of Proceeds of Sale of Collateral. Notwithstanding anything herein to the contrary, the proceeds of any sale of Collateral shall be applied: (a) first, to the payment of all necessary costs and expenses incident to such Collateral sale, including but not limited to all court costs and charges of every character in the event foreclosed by suit or any judicial proceeding, (b) then, to the Loans and LC Obligations (including specifically without limitation the principal and interest with respect thereto); (c) then, to all other outstanding Obligations, and (d) then, the remainder, if any, shall be paid to Borrower, or to Borrower’s heirs, devisees, representatives, successors or assigns, or such other persons as may be entitled thereto by law.
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Application of Proceeds of Sale of Collateral. Notwithstanding anything herein to the contrary, the proceeds of any sale of Collateral shall be applied: (a) first, to the payment of all necessary costs and expenses incident to such Collateral sale, including but not limited to all court costs and charges of every character in the event foreclosed by suit or any judicial proceeding, (b) then, to the Loans and LC Obligations (including specifically without limitation the principal and interest with respect thereto) made or incurred in connection with the financing of such Collateral, as set forth in the Financing Request-Initial and Financing Request-Final pursuant to which such Loans and/or LC Obligations were originally committed, and not to any other Obligations and (c) then, to all other outstanding Obligations, and (d) then, the remainder, if any, shall be paid to Borrower, or to Borrower's heirs, devisees, representatives, successors or assigns, or such other persons as may be entitled thereto by law.
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Application of Proceeds of Sale of Collateral. Except as otherwise provided by law, Secured Parties shall apply the proceeds realized from the sale of any of the Collateral as follows:
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Application of Proceeds of Sale of Collateral. The proceeds of any disposition of all, or any part of, the Collateral shall be applied by Secured Party as follows:
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Application of Proceeds of Sale of Collateral. Except as otherwise provided by law, the proceeds realized from the sale of any of the Collateral shall be applied by Secured Party as follows: Security Agreement between ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇ and Protein Polymer Technologies, Inc. dated as of April 13, 2006.
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Application of Proceeds of Sale of Collateral. Except as otherwise provided by law, the proceeds realized from the sale of any of the Collateral shall be applied by Secured Parties as follows: SECURITY AGREEMENT AMONG SECURED PARTIES, ACTION INDUSTRIES, INC., AND GENERAL VISION SERVICES, INC. DATED MARCH 18, 1996. First, to the reasonable costs and expenses of every kind incurred in connection with or incidental to the care, safekeeping or otherwise of any and all of the Collateral or in any way relating to the rights of Secured Parties hereunder, including reasonable attorney's fees and legal expenses; Second, to the satisfaction of the Obligations; Third, to the payment of any other amounts required by applicable law; Fourth, to GVS to the extent that Debtor is then indebted to GVS as provided in the GVS Note; and Fifth, to Debtor to the extent of the surplus proceeds, if any. In the event that the proceeds realized from the sale as aforesaid are insufficient to pay all amounts to which Secured Parties are legally entitled, Debtor will be liable for the deficiency, together with interest thereon, at the rate of fifteen (15%) percent per annum, and the reasonable fees of any attorneys employed by Secured Parties to collect such deficiency.
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Related to Application of Proceeds of Sale of Collateral

  • Application of Proceeds of Sale The proceeds of any sale of Collateral pursuant to Section 6, as well as any Collateral consisting of cash, shall be applied by the Collateral Agent as follows: FIRST, to the payment of all costs and expenses incurred by the Collateral Agent in connection with such sale or otherwise in connection with this Agreement, any other Loan Document or any of the Obligations, including all court costs and the reasonable fees and expenses of its agents and legal counsel, the repayment of all advances made by the Collateral Agent hereunder or under any other Loan Document on behalf of any Pledgor and any other costs or expenses incurred in connection with the exercise of any right or remedy hereunder or under any other Loan Document; SECOND, to the payment in full of the Obligations (the amounts so applied to be distributed among the Secured Parties pro rata in accordance with the amounts of the Obligations owed to them on the date of any such distribution); and THIRD, to the Pledgors, their successors or assigns, or as a court of competent jurisdiction may otherwise direct. The Collateral Agent shall have absolute discretion as to the time of application of any such proceeds, moneys or balances in accordance with this Agreement. Upon any sale of the Collateral by the Collateral Agent (including pursuant to a power of sale granted by statute or under a judicial proceeding), the receipt of the purchase money by the Collateral Agent or of the officer making the sale shall be a sufficient discharge to the purchaser or purchasers of the Collateral so sold and such purchaser or purchasers shall not be obligated to see to the application of any part of the purchase money paid over to the Collateral Agent or such officer or be answerable in any way for the misapplication thereof.

  • Application of Proceeds of Collateral Notwithstanding anything to the contrary in this Agreement, in the case of any Event of Default under Section 9.1(i), immediately following the occurrence thereof, and in the case of any other Event of Default, upon the termination of the Revolving Credit Aggregate Commitment, the acceleration of any Indebtedness arising under this Agreement and/or the exercise of any other remedy in each case by the requisite Lenders under Section 9.2 hereof, the Agent shall apply the proceeds of any Collateral, together with any offsets, voluntary payments by any Credit Party or others and any other sums received or collected in respect of the Indebtedness first, to pay all incurred and unpaid fees and expenses of the Agent under the Loan Documents and any protective advances made by Agent with respect to the Collateral under or pursuant to the terms of any Loan Document, next, to pay any fees and expenses owed to the Issuing Lender hereunder, next, to the Indebtedness under the Revolving Credit (including the Swing Line and any Reimbursement Obligations), any obligations owing by any Credit party under any Hedging Agreements or in connection with any Lender Products on a pro rata basis, next, to any other Indebtedness on a pro rata basis, and then, if there is any excess, to the Credit Parties or as otherwise required under applicable law, as the case may be.

  • Application of Collateral The proceeds of any sale, or other realization (other than that received from a sale or other realization permitted by the Credit Agreement) upon all or any part of the Pledged Collateral pledged by the Pledgors shall be applied by the Secured Party as set forth in Section 7.06 of the Credit Agreement.

  • Sale of Collateral In addition to any other remedy provided herein, the Lender may immediately, without advertisement, sell at public or private sale or otherwise realize upon, in Baltimore, Maryland, or elsewhere, the whole or, from time to time, any part of the Collateral, or any interest which the Borrower may have therein. After deducting from the proceeds of sale or other disposition of the Collateral all expenses, including all expenses for legal services, the Lender shall apply such proceeds toward the satisfaction of the Obligations. Any remainder of the proceeds after satisfaction in full of the Obligations shall be distributed as required by applicable Law. Notice of any sale or other disposition shall be given to the Borrower at least ten (10) days before the time of any intended public sale or of the time after which any intended private sale or other disposition of the Collateral is to be made, which the Borrower hereby agrees shall be reasonable notice of such sale or other disposition. The Borrower agrees to assemble, or to cause to be assembled, at the Borrower's own expense, the Collateral at such place or places as the Lender shall designate. At any such sale or other disposition, the Lender may, to the extent permissible under applicable law, purchase the whole or any part of the Collateral, free from any right of redemption on the part of the Borrower, which right is hereby waived and released. Without limiting the generality of any of the rights and remedies conferred upon the Lender under this Section, the Lender may, to the full extent permitted by applicable law: (a) enter upon the premises of the Borrower, exclude therefrom the Borrower or any entity connected therewith, and take immediate possession of the Collateral, either personally or by means of a receiver appointed by a court of competent jurisdiction, using all necessary force to do so; (b) at the Lender's option, use, operate, manage, and control the Collateral in any lawful manner; (c) collect and receive all rents, income, revenue, earnings, issues, and profits therefrom; and (d) maintain, repair, renovate, alter or remove the Collateral as the Lender may determine in the Lender's discretion.

  • Application of Proceeds Subject to the terms of any First Lien Intercreditor Agreement and any Second Lien Intercreditor Agreement, any amount received by the Administrative Agent or the Collateral Agent from any Credit Party (or from proceeds of any Collateral) following any acceleration of the Obligations under this Agreement or any Event of Default with respect to the Borrower under Section 11.4 shall be applied: (i) first, to the payment of all reasonable and documented costs and expenses incurred by the Administrative Agent or the Collateral Agent in connection with any collection or sale of the Collateral or otherwise in connection with any Credit Document, including all court costs and the reasonable fees and expenses of its agents and legal counsel, the repayment of all advances made by the Administrative Agent or the Collateral Agent hereunder or under any other Credit Document on behalf of any Credit Party and any other reasonable and documented costs or expenses incurred in connection with the exercise of any right or remedy hereunder or under any other Credit Document to the extent reimbursable hereunder or thereunder; (ii) second, to the Secured Parties, an amount (x) equal to all Obligations owing to them on the date of any distribution and (y) sufficient to Cash Collateralize all L/C Obligations on the date of any distribution, and, if such moneys shall be insufficient to pay such amounts in full and Cash Collateralize all L/C Obligations, then ratably (without priority of any one over any other) to such Secured Parties in proportion to the unpaid amounts thereof and to Cash Collateralize the L/C Obligations; and (iii) third, any surplus then remaining shall be paid to the applicable Credit Parties or their successors or assigns or to whomsoever may be lawfully entitled to receive the same or as a court of competent jurisdiction may direct; provided that any amount applied to Cash Collateralize any L/C Obligations that has not been applied to reimburse the Borrower for Unpaid Drawings under the applicable Letters of Credit at the time of expiration of all such Letters of Credit shall be applied by the Administrative Agent in the order specified in clauses (i) through (iii) above. Notwithstanding the foregoing, amounts received from any Guarantor that is not an “Eligible Contract Participant” (as defined in the Commodity Exchange Act) shall not be applied to its Obligations that are Excluded Swap Obligations.