Common use of Order of Distributions Clause in Contracts

Order of Distributions. The order referred to in Clause 11.1 (Application of proceeds) is: (a) in or towards the payment of all costs, losses, liabilities and expenses of and incidental to the appointment of any Receiver or Delegate and the exercise of any of his rights, including his remuneration and all outgoings paid by him; (b) in or towards the payment of the Secured Liabilities in the following order: first, toward payment of any accrued interest unpaid under the Transaction Documents, second, toward payment of any principal unpaid under the Transaction Documents and, third, toward payment of any other obligations unpaid under the Transaction Documents; and (c) in payment of any surplus to Chargor or other person entitled to it.