Common use of Application of Repayments Clause in Contracts

Application of Repayments. (a) Except as otherwise indicated herein, all payments made to the Administrative Agent by or for the Borrower for the account of the Lenders in connection herewith shall be distributed the same day by the Administrative Agent, in accordance with its normal practice, in funds having same day value among the Lenders to the accounts last designated in writing by such Lenders respectively to the Administrative Agent pro rata in accordance with their respective Participations. Amounts so distributed shall be applied by the Lenders as follows: (i) to amounts due hereunder in respect of Bankers' Acceptances; (ii) to amounts (other than principal or interest) due under any Loan Document in respect of fees, expenses and other amounts; (iii) to amounts due hereunder in respect of interest on any outstanding Advances; and (iv) to the principal amount of any outstanding Advances. Further, payments of interest or principal received by the Lenders shall be applied against Advances in order of: (v) in the case of Prime Rate Advances or U.S. Base Rate Advances, their respective Drawdown Dates or dates of Conversion, as the case may be, commencing with the earlier or earliest thereof; (vi) in the case of Libor Advances, the day following the last day of their respective Interest Periods, commencing with the earlier or earliest thereof; and (vii) in the case of Bankers' Acceptances, their respective maturity dates, commencing with the earlier or earliest thereof. Payments received by the Administrative Agent on the Maturity Date of Bankers' Acceptances shall be distributed pro rata among the Lenders based on their Participation in each Bankers' Acceptance. Payments received by the Administrative Agent on account of the Principal Amount of Bankers' Acceptances which are maturing or which have previously matured, whether pursuant to enforcement of remedies or otherwise, shall also be so distributed. (b) Where a sum is to be paid hereunder by the Borrower or any Lender to the Administrative Agent for the account of another party hereto, the Administrative Agent shall not be obliged to make the same available to that other party hereto, whether such party is the Borrower or a Lender, until it has been able to establish that it has actually received such sum, but if it does pay out a sum and it proves to be the case that it had not actually received the sum it paid out, then the party hereto to whom such sum was so made available, whether such party is the Borrower or a Lender, shall on request ensure that the amount so made available is refunded to the Administrative Agent, and shall on demand indemnify the Administrative Agent against any cost or loss it may have suffered or incurred by reason of its having paid out such sum prior to its having received such sum; provided that nothing in this Section 2.8(b) shall limit any rights or remedies that the Borrower may otherwise have against a defaulting Lender or the rights and remedies that a Lender may otherwise have against the Borrower or a defaulting Lender.