Common use of Defaulting Bank Clause in Contracts

Defaulting Bank. In the event that, at any time, any Bank shall be a Defaulting Bank, (a) a Defaulted Amount owed to Agent or another Bank shall bear interest at an annual rate equal to the Federal Funds Rate for the first three business days such Defaulted Amount is owing, and thereafter at a rate of 3% above the Federal Funds Rate, and (b) Agent may apply all monies that would otherwise be payable to the Defaulting Bank under the Loan Documents instead to the payment of any Defaulted Amounts owed to the following persons, in the following order of priority: first to Agent, then to the Banks, then to Borrower. In addition, a Person owed a Defaulted Amount may exercise all available remedies to collect such Defaulted Amount from the Defaulting Bank.

Defaulting Bank. In the event that, at any time, any Bank shall be a Defaulting Bank, (a) a Defaulted Amount owed to Agent or another Bank shall bear interest at an annual rate equal to the Federal Funds Rate for the first three business days such Defaulted Amount is owing, and thereafter at a rate of 3% above the Federal Funds Rate, and (b) Agent may apply all monies that would otherwise be payable to the Defaulting Bank under the Loan Documents instead to the payment of any Defaulted Amounts owed to the following persons, in the following order of priority: first to Agent, then to the Banks, then to BorrowerBorrowers. In addition, a Person owed a Defaulted Amount may exercise all available remedies to collect such Defaulted Amount from the Defaulting Bank.

Defaulting Bank. In the event that, at any time, any Bank shall be a Defaulting Bank, (a) a Defaulted Amount owed to Agent Agent, Issuing Bank or another Bank shall bear interest at an annual rate equal to the Federal Funds Rate for the first three business days Business Days such Defaulted Amount is owing, and thereafter at a rate of 3% above the Federal Funds Rate, and (b) Agent may apply all monies that would otherwise be payable to the Defaulting Bank under the Loan Documents instead to the payment of any Defaulted Amounts owed to the following personsPersons, in the following order of priority: first to Agent, then to Issuing Bank, then to the other Banks, then to BorrowerBorrowers. In addition, a Person owed a Defaulted Amount may exercise all available remedies to collect such Defaulted Amount from the Defaulting Bank.