Distribution and Application of Payments. Received When an --------------------------------------------------------- Event of Default Exists or Has Ceased to Exist Following Rejection of the Lease. ------------------------------------------------------------------------------- (a) Proceeds of Leased Property. Any payments received by the Lessor or --------------------------- the Agent when an Event of Default exists (or has ceased to exist by reason of a rejection of the Lease in a proceeding with respect to a Lessee described in Article XII (g) of the Lease) or a Loan Event of Default exists, as (i) proceeds from the sale of any or all of the Leased Property sold pursuant to the exercise of the Lessor's remedies pursuant to Article XIII of the Lease or pursuant to the exercise of the Agent's remedies pursuant to the Loan Documents, or (ii) proceeds of any amounts from any insurer or any Governmental Authority in connection with an Event of Loss or Event of Taking shall if received by the Lessor be paid to the Agent as promptly as possible, and shall be distributed or applied in the following order of priority prior to the Release Date: first, to the Agent for any amounts reasonably expended by it in ----- connection with such Leased Property or the Operative Documents and not previously reimbursed to it; second, to the Lenders pro rata for application to their Funding Party ------ --- ---- Balances in respect of all of the Leased Properties, an amount equal to such Funding Party Balances; and third, to the Lessor; and ----- on and after such Release Date (and any application otherwise required under this Section 3 has been made) such amounts shall be paid over to the Lessor. --------- (b) Proceeds of Recoveries from Lessee. Any payments received by any ---------------------------------- Funding Party when an Event of Default exists (or has ceased to exist by reason of a rejection of the Lease in a proceeding with respect to a Lessee described in Article XII(g) of the Lease), from a Lessee as a payment in accordance with the Lease shall be paid to the Agent as promptly as possible, and shall then be distributed or applied by the Agent as promptly as possible in the order of priority set forth in paragraph (a) above. -------------
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Sources: Loan Agreement (Hughes Supply Inc)
Distribution and Application of Payments. Received When an --------------------------------------------------------- Event of Default Exists or Has Ceased to Exist Following Rejection of the Lease. -------------------------------------------------------------------------------
(a) Proceeds of Leased PropertyRECEIVED WHEN AN EVENT OF DEFAULT EXISTS OR HAS CEASED TO EXIST FOLLOWING REJECTION OF THE LEASE. Any payments received by the Lessor or --------------------------- the Agent Credit Bank when an Event of Default exists (or has ceased to exist by reason of a rejection of the Lease in a proceeding with respect to a the Lessee described in Article XII (gARTICLE XIII(g) of the Lease) ), as either or a Loan Event of Default exists, asboth:
(i) proceeds from the sale of any or all of the Leased Property sold pursuant to the exercise of the Lessor's remedies pursuant to Article XIII ARTICLE XIV of the Lease or pursuant to the exercise of the Agent's remedies pursuant to the Loan Documents, Lease; or
(ii) proceeds of any amounts from any insurer or any Governmental Authority in connection with an Event of Loss or Event of Taking shall Taking; shall, if received by the Lessor Lessor, be paid to the Agent Credit Bank as promptly as possible, and shall shall, if and when received by the Credit Bank, be distributed or applied by the Credit Bank in the following order of priority prior to the Release Datepriority: firstFIRST, to the Agent Credit Bank for any amounts reasonably expended by it in ----- connection with such the Leased Property or the Operative Documents and not previously reimbursed to it; secondSECOND, to the Lenders pro rata Credit Bank for application unreimbursed Interest Drawings and Program Expense Drawings on the Letter of Credit and unpaid Letter of Credit Fees; THIRD, to their Funding Party ------ --- ---- Balances the Credit Bank for unreimbursed Principal Drawings under the Letter of Credit; FOURTH, to the Lessor in respect an amount up to the sum of (i) all accrued and unpaid Contribution Return as of the Leased Propertiesdate of payment, an amount equal plus (ii) the outstanding principal balance of the Contribution; FIFTH, to such Funding Party Balancesthe Note Trustee for any amounts then due and unpaid under the Borrower Promissory Note; and thirdSIXTH, to the Lessor, any unpaid Supplemental Rent or unpaid portion of the Lease Balance; and ----- SEVENTH, on and after such Release Date (the payment in full of all Letter of Credit Liabilities, all amounts due and payable under the Borrower Promissory Note not paid by Drawings under the Letter of Credit, and any application otherwise required under this Section 3 has been made) remaining amounts of the Lease Balance, such amounts shall be paid over to the Lessor. ---------
(b) Proceeds of Recoveries from Lessee. Any payments received by any ---------------------------------- Funding Party when an Event of Default exists (or has ceased to exist by reason of a rejection of the Lease in a proceeding with respect to a Lessee described in Article XII(g) of the Lease), from a Lessee as a payment in accordance with the Lease Lessor and shall be paid distributed by the Lessor first, to the Agent as promptly as possibleLessor for application to any unpaid amounts owing to the Lessor under the Operative Documents, and shall then be distributed second, to the Person or applied by Persons legally entitled thereto, the Agent as promptly as possible in the order of priority set forth in paragraph (a) above. -------------excess, if any.
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