Common use of Equalisation Payments Clause in Contracts

Equalisation Payments. If, following a Senior Enforcement Event, any amount owing by the Borrower under the Finance Documents to a Senior Creditor (a Recovering Creditor) is discharged by payment, set-off or any other manner other than through the Intercreditor Agent under Clause 10 (Proceeds of Enforcement of Security), then: (a) the Recovering Creditor must, within three Business Days supply details of the recovery to the Intercreditor Agent; (b) the Intercreditor Agent must calculate whether the recovery is in excess of the amount which the Recovering Creditor would have received if the recovery had been received by the Intercreditor Agent under 10 (Proceeds of Enforcement of Security), without taking account of any Tax which would be imposed on the Senior Agent in relation to the recovery or distribution; and (c) the Recovering Creditor must pay to the Intercreditor Agent an amount equal to the excess (the redistribution).

Equalisation Payments. If, following a Senior Enforcement Event, any amount owing by the Borrower under the Finance Documents to a Senior Creditor (a Recovering Creditor) is discharged by payment, set-off or any other manner other than through the Intercreditor Agent under Clause 10 (Proceeds of Enforcement of Security), then: (a) the Recovering Creditor must, within three Business Days supply details of the recovery to the Intercreditor Agent; (b) the Intercreditor Agent must calculate whether the recovery is in excess of the amount which the Recovering Creditor would have received if the recovery had been received by the Intercreditor Agent under Clause 10 (Proceeds of Enforcement of Security), without taking account of any Tax which would be imposed on the Senior Agent in relation to the recovery or distribution; and (c) the Recovering Creditor must pay to the Intercreditor Agent an amount equal to the excess (the redistribution).