Common use of Application of retentions Clause in Contracts

Application of retentions. Upon the occurrence of a Default, the Lender shall be entitled to request from the Borrower to, and the Borrower to procure that each Corporate Guarantor will, provide sufficient funds standing to the credit of the Retention Account, on each Repayment Date and on each due date for the payment of interest under this Agreement distribute to the Lender so much of the then balance on the Retention Account as equals: (a) the Instalment in respect of the relevant Instalment due on that Repayment Date pursuant to Clause 8.1 (Amount of Instalments); or (b) the amount of interest in respect of the relevant Instalment payable on that interest payment date, in discharge of the Borrower’s liability for that Instalment or that interest.