Common use of Application of retentions Clause in Contracts

Application of retentions. Until an Event of Default or a Potential Event of Default occurs, the Agent shall, to the extent there are sufficient funds standing to the credit of the Retention Account, on each Repayment Date in respect of an Advance and on each due date for the payment of interest in respect of that Advance under this Agreement distribute to the Lenders in accordance with Clause 16.4 (Distribution of payments to Creditor Parties) so much of the then balance on the Retention Account as equals: (a) the Instalment in respect of the relevant Advance due on that Repayment Date pursuant to Clause 8.1 (Amount of Instalments); or (b) the amount of interest in respect of the relevant Advance payable on that interest payment date, in discharge of the Borrowers’ liability for that Instalment or that interest.

Application of retentions. Until an Event of Default or a Potential Event of Default occurs, the Agent shall, to the extent there are sufficient funds standing to the credit of the Retention Account, on each Repayment Date in respect of an Advance and on each due date for the payment of interest in respect of that Advance under this Agreement distribute to the Lenders in accordance with Clause 16.4 (Distribution of payments to Creditor Parties) so much of the then balance on the Retention Account as equals: (a) the Repayment Instalment in respect of the relevant Advance due on that Repayment Date pursuant to Clause 8.1 (Amount of Instalmentsrepayment instalments); or (b) the amount of interest in respect of the relevant Advance Loan payable on that interest payment dateInterest Payment Date, in discharge of the Borrowers’ liability for that Repayment Instalment or that interest.