Common use of DISPOSITION PROCEEDS Clause in Contracts

DISPOSITION PROCEEDS. All Net Cash Proceeds from an Asset Disposition on deposit in the Collection Account shall be applied in the manner and order of priority set forth in Section 2.07(c)(i) or Section 2.07(c)(ii), as applicable, or alternatively, (i) in the case of an Asset Disposition constituting an Event of Loss or Condemnation, unless the Borrower intends to use the proceeds of such Asset Disposition to acquire Qualifying Replacement Railcars, any excess Net Cash Proceeds after the mandatory prepayment pursuant to Section 2.07(b) is made may be deposited into the Modifications and Improvements Account to fund Optional Modifications in accordance with Section 6.09(b) or (ii) such Net Cash Proceeds may be deposited into the Optional Reinvestment Account to fund the acquisition cost of the Qualifying Replacement Railcars in accordance with Section 6.09(c).