Common use of Payment Processing; Allocation; Priority of Payments Clause in Contracts

Payment Processing; Allocation; Priority of Payments. (i) The Servicer shall post all payments received in respect of the Billed Charges to the applicable Customer accounts as promptly as practicable, and, in any event, substantially all such payments shall be posted in no event later than the third (3rd) Business Day after such payments are received by Servicer. (ii) Subject to clause (iii) below, the Servicer shall apply payments received to each Customer’s account in proportion to the charges contained on the outstanding Bill to such Customer. (iii) So long as the Intercreditor Agreement is in effect, the Servicer shall allocate, or cause to the allocated, amounts owed to the Issuer and to the other recipients of remittances described therein in accordance with the terms of the Intercreditor Agreement. Any amounts collected by the Servicer that represent partial payments of, (A) if the Intercreditor Agreement remains in effect, the portion of the Bill allocable to Charges pursuant to the terms of the Intercreditor Agreement, or (B) otherwise, the total Bill to a Customer, in each case shall be allocated as follows: (1) first to amounts owed to the Issuer, the Servicer and any other affiliate of the Servicer which is owed “securitized surcharges” as defined in Section 278.670(20) of the Act and other fees and charges (excluding any late fees), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such Bill or applicable portion thereof, as applicable; then (2) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Charges shall be allocated to the Issuer in accordance with the terms of the Charge Rider. (iv) The Servicer shall hold all over-payments for the benefit of the Issuer and Kentucky Power and shall apply such funds to future Bill charges in accordance with clauses (ii) and (iii) as such charges become due. (v) For Customers on a Budget Billing Plan, the Servicer shall treat Charge Payments received from such Customers as if such Customers had been billed for their respective Charges in the absence of the Budget Billing Plan; partial payment of a Budget Billing Plan payment shall be allocated according to clause (iii) and overpayment of a Budget Billing Plan payment shall be allocated according to clause (iv).

Payment Processing; Allocation; Priority of Payments. (i) i. The Servicer shall post all payments received in respect of the Billed Charges to the applicable Customer accounts as promptly as practicable, and, in any event, substantially all such payments shall be posted in no event later than the third three (3rd3) Servicer Business Day Days after such payments are received by Servicerreceipt. (ii) Subject . If any Customer does not pay the full amount of any Bill to clause (iii) belowthe Servicer, the amount paid by the Customer will be applied to all charges on the Bill, including without limitation electric service charges and all Energy Transition Charges (under the Financing Order or future LPSC orders) and all similar securitization charges (including, without limitation, Storm Recovery Charges) under existing or future LPSC orders, based, as to a Bill with charges covering more than one month, on the chronological order of billing, and, as to those charges with the same billing date, pro-rata. In addition, such partial collections representing Energy Transition Charges and any other similar securitization charges (including, without limitation, Storm Recovery Charges) shall be allocated among all such securitization bonds pro-rata based upon the amounts billed with respect to each issuance of securitization bonds, provided that late fees and charges may be allocated to the Servicer as provided in the Rate Schedules. iii. The Servicer shall apply payments received to each Customer’s account in proportion to the charges contained on the outstanding Bill to such Customer. (iii) So long as the Intercreditor Agreement is in effect, the Servicer shall allocate, or cause to the allocated, amounts owed to the Issuer and to the other recipients of remittances described therein in accordance with the terms of the Intercreditor Agreement. Any amounts collected by the Servicer that represent partial payments of, (A) if the Intercreditor Agreement remains in effect, the portion of the Bill allocable to Charges pursuant to the terms of the Intercreditor Agreement, or (B) otherwise, the total Bill to a Customer, in each case shall be allocated as follows: (1) first to amounts owed to the Issuer, the Servicer and any other affiliate of the Servicer which is owed “securitized surcharges” as defined in Section 278.670(20) of the Act and other fees and charges (excluding any late fees), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such Bill or applicable portion thereof, as applicable; then (2) all All late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Energy Transition Charges shall be allocated to the Issuer in accordance with the terms of the Charge RiderRate Schedules. It is understood that such allocations may be made on a delayed basis in accordance with the reconciliations described in Section 6(c) of this Annex 1. (iv) . The Servicer shall hold all over-payments for the benefit of the Issuer and Kentucky Cleco Power and shall apply such funds to future Bill charges in accordance with clauses (ii) and (iii) (as applicable) as such charges become due. (v) v. For Customers on a Budget Billing Plan, the Servicer shall treat Charge Payments ETC Collections received from such Customers as if such Customers had been billed for their respective Energy Transition Charges in the absence of the Budget Billing Plan; partial payment of a Budget Billing Plan payment shall be allocated according to clause (ii) or (iii) (as applicable) and overpayment of a Budget Billing Plan payment shall be allocated according to clause (iv).

Payment Processing; Allocation; Priority of Payments. (i) The Servicer shall post all payments received in respect of the Billed Charges to the applicable Customer accounts as promptly as practicable, and, in any event, substantially all such payments shall be posted in no event later than the third three (3rd3) Business Day Days after such payments are received by Servicerreceipt. (ii) Subject to clause (iii) below, the Servicer shall apply payments received to each Customer’s or each Applicable REP’s account in proportion to the charges contained on the outstanding Bill ▇▇▇▇ to such CustomerCustomer or Applicable REP. (iii) So long as the Intercreditor Agreement is in effect, the Servicer shall allocate, or cause to the allocated, amounts owed to the Issuer and to the other recipients of remittances described therein in accordance with the terms of the Intercreditor Agreement. Any amounts collected by the Servicer that represent partial payments of, (A) if the Intercreditor Agreement remains in effect, the portion of the Bill allocable to Charges pursuant to the terms of the Intercreditor Agreement, or (B) otherwise, the total Bill ▇▇▇▇ to a Customer, in each case Customer or REP shall be allocated as follows: (1A) first to amounts owed to the Issuer, the Servicer AEP Texas and any other affiliate of the Servicer AEP Texas which is owed “securitized surchargestransition charges” as defined in Section 278.670(2039.302(7) (including as modified by Section 36.403(f) to include system restoration charges) of the Act Securitization Law and other fees and charges charges, (excluding any late fees), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such Bill or applicable portion thereof, as applicable▇▇▇▇; then (2B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of System Restoration Charges shall be allocated to the Issuer in accordance with the terms of the Charge RiderTariff. As provided in the Intercreditor Agreement, if more than one issue of system restoration bonds or transition bonds issued under the Securitization Law is outstanding, the Servicer shall allocate, or cause to the allocated, amounts owed to the Issuer and to each other issuer of system restoration bonds or transition bonds ratably based upon the total amount of system restoration charges or transition charges, as applicable, on such ▇▇▇▇ which were billed in respect to each such issue of system restoration bonds or transition bonds. (iv) The Servicer shall hold all over-payments for the benefit of the Issuer and Kentucky Power AEP Texas and shall apply such funds to future Bill ▇▇▇▇ charges in accordance with clauses (ii) and (iii) as such charges become due. (v) For Customers on a Budget Billing Plan, the Servicer shall treat Charge SRC Payments received from such Customers as if such Customers had been billed for their respective System Restoration Charges in the absence of the Budget Billing Plan; partial payment of a Budget Billing Plan payment shall be allocated according to clause (iii) and overpayment of a Budget Billing Plan payment shall be allocated according to clause (iv).

Payment Processing; Allocation; Priority of Payments. (i) The Servicer shall post all payments received in respect of the Billed Charges SRCs to the applicable Customer accounts as promptly as practicable, and, in any event, substantially all such payments shall be posted in no event later than the third three (3rd3) Servicer Business Day Days after actual receipt of such payments are received by Servicer. (ii) Subject to clause (iii) below, the Servicer shall apply payments received to each Customer’s account in proportion to the charges contained on the outstanding Bill to such Customer. (iii) So long as the Intercreditor Agreement is in effect, the Servicer shall allocate, or cause to the be allocated, amounts owed to the Issuer and to the other recipients of remittances described therein in accordance with the terms of the Intercreditor Agreement. Any amounts collected by the Servicer that represent partial payments of, (A) if the Intercreditor Agreement remains in effect, the portion of the Bill allocable to Storm Recovery Charges pursuant to the terms of the Intercreditor Agreement, or (B) otherwise, the total Bill will be applied to all charges on the Bill, including without limitation electric service charges and all Storm Recovery Charges (under the Financing Order or future LPSC orders) and all similar securitization charges, based, as to a CustomerBill with charges covering more than one month, on the chronological order of billing, and, as to those charges with the same billing date, pro rata. In addition, subject to any future intercreditor or joinder agreement, in each case shall be allocated as follows: (1) first to amounts owed to the Issuer, event the Servicer sponsors future offerings of storm recovery bonds or other securitizations bonds, such partial collections representing storm recovery charges and any other affiliate of the Servicer which is owed “securitized surcharges” as defined in Section 278.670(20) of the Act and other fees and charges (excluding any late fees), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such Bill or applicable portion thereof, as applicable; then (2) all late similar securitization charges shall be allocated among all such securitization bonds pro rata based upon the amounts billed with respect to the Servicer; each issuance of securitization bonds, provided that penalty payments owed on late payments of Charges shall fees and charges may be allocated to the Issuer Servicer as provided in accordance with the terms of the Charge Rate Schedule Rider. (iv) The Servicer shall hold all over-payments for the benefit of the Issuer and Kentucky Power SWEPCO and shall apply such funds to future Bill charges in accordance with clauses (ii) and (iii) (as applicable) as such charges become due. (v) For Customers on a Budget Billing Plan, the Servicer shall treat Charge Payments SRC Collections received from such Customers as if such Customers had been billed for their respective Storm Recovery Charges in the absence of the Budget Billing Plan; partial payment of a Budget Billing Plan payment shall be allocated according to clause (ii) and (iii) (as applicable) and overpayment of a Budget Billing Plan payment shall be allocated according to clause (iv). (vi) For Customers on a Prepayment Plan, the Servicer shall treat prepaid SRC Collections received from such Customers as if such Customers had been billed for their Storm Recovery Charges, and made such SRC Payments, as of the date such SRC Payments would have been due in the absence of the applicable Prepayment Plan; partial payment of a Prepayment Plan payment shall be allocated according to clause (ii) and (iii) (as applicable) and overpayment of a Prepayment Plan payment shall be allocated according to clause (iv).

Payment Processing; Allocation; Priority of Payments. (i) The Servicer shall post all payments received in respect of the Billed Charges to the applicable Customer accounts as promptly as practicable, and, in any event, substantially all such payments shall be posted in no event later than the third three (3rd3) Business Day Days after such payments are received by Servicerreceipt. (ii) Subject to clause (iii) belowUntil retail competition is introduced into the Service Area, the Servicer shall apply payments received to each Customer’s account in proportion to the charges contained on the outstanding Bill to such Customer. (iii) So long as the Intercreditor Agreement is in effect, the Servicer shall allocate, or cause to the allocated, amounts owed to the Issuer and to the other recipients of remittances described therein in accordance with the terms of the Intercreditor Agreement. Any any amounts collected by the Servicer that represent partial payments ofof the total ▇▇▇▇ to a Customer shall be applied by the Servicer in the following order of priority: (1) to any amounts due with respect to customer deposits, (A2) if to all electric service charges of EGSI on the Intercreditor Agreement remains in effect▇▇▇▇ and to all Transition Charges on the ▇▇▇▇, pro rata based upon the portion of total amount billed, and (3) to tax and remaining charges billed to the Bill allocable Customers. Any amounts allocated to Charges Transition Charge payments pursuant to the terms of the Intercreditor Agreement, or (B2) otherwise, the total Bill to a Customer, in each case above shall be further allocated as follows: (1A) first to amounts owed to the Issuer, the Servicer EGSI and any other affiliate of the Servicer EGSI which is owed “securitized surcharges” "Transition Charges" as defined in Section 278.670(20Sections 39.302(7) and 39.460(f) of the Act and other fees and charges Securitization Law (excluding any late feesfees and interest charges), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such Bill or applicable portion thereof, as applicable▇▇▇▇; then (2B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Transition Charges shall be allocated to the Issuer in accordance with the terms of the Charge RiderTariffs. If more than one Series of Transition Bonds is outstanding, the Servicer shall allocate amounts owed to the Issuer ratably based on the total amount of Transition Charges on such ▇▇▇▇ which were billed in respect of each such Series. It is understood that such allocations may be made on a delayed basis in accordance with the reconciliations described in Section 6 of this Annex. When and if the Service Area becomes subject to retail competition, the Servicer shall apply payments received to each Customer's or any and each Applicable REP's account in proportion to the charges contained on the outstanding ▇▇▇▇ to such Customer or Applicable REP. Any amounts collected by the Servicer that represent partial payments of the total ▇▇▇▇ to a Customer or any REP shall be allocated as follows: (ivA) The first to amounts owed to the Issuer, EGSI and any other affiliate of EGSI which is owed "Transition Charges" as defined in Sections 39.302(7) and 39.460(f) of the Securitization Law (excluding any late fees and interest charges), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such ▇▇▇▇; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Transition Charges shall be allocated to the Issuer in accordance with the terms of the Tariffs. If more than one Series of Transition Bonds is outstanding, the Servicer shall allocate amounts owed to the Issuer ratably based on the total amount of Transition Charges on such ▇▇▇▇ which were billed in respect of each such Series. It is understood that such allocations may be made on a delayed basis in accordance with the reconciliations described in Section 6(e) of this Annex I.The Servicer shall hold all over-payments for the benefit of the Issuer and Kentucky Power EGSI and shall apply such funds to future Bill ▇▇▇▇ charges in accordance with clauses (ii) and (iii) (as applicable) as such charges become due. (v) For Customers on a Budget Billing Plan, the Servicer shall treat Charge TC Payments received from such Customers as if such Customers had been billed for their respective Transition Charges in the absence of the Budget Billing Plan; partial payment of a Budget Billing Plan payment shall be allocated according to clause (ii) or (iii) (as applicable) and overpayment of a Budget Billing Plan payment shall be allocated according to clause (iv).

Payment Processing; Allocation; Priority of Payments. (i) The Servicer shall post all payments received in respect of the Billed Charges to the applicable Customer accounts as promptly as practicable, and, in any event, substantially all such payments shall be posted in no event later than the third three (3rd3) Business Day Days after such payments are received by Servicerreceipt. (ii) Subject to clause (iii) belowUntil retail competition is introduced into the Service Area, the Servicer shall apply payments received to each Customer’s account in proportion to the charges contained on the outstanding Bill to such Customer. (iii) So long as the Intercreditor Agreement is in effect, the Servicer shall allocate, or cause to the allocated, amounts owed to the Issuer and to the other recipients of remittances described therein in accordance with the terms of the Intercreditor Agreement. Any any amounts collected by the Servicer that represent partial payments ofof the total ▇▇▇▇ to a Customer shall be applied by the Servicer in the following order of priority: (1) to any amounts due with respect to ANNEX I customer deposits, (A2) if to all electric service charges of ETI on the Intercreditor Agreement remains in effect▇▇▇▇ and to all System Restoration Charges on the ▇▇▇▇, pro rata based upon the portion of total amount billed, and (3) to tax and remaining charges billed to the Bill allocable Customers. Any amounts allocated to Charges System Restoration Charge payments pursuant to the terms of the Intercreditor Agreement, or (B2) otherwise, the total Bill to a Customer, in each case above shall be further allocated as follows: (1A) first to amounts owed to the Issuer, the Servicer ETI and any other affiliate of the Servicer ETI which is owed “securitized surchargesSystem Restoration Charges” as defined in Section 278.670(2039.302(7) whether as supplemented by 36.403(f) of the Financing Act and other fees and charges or another section of the Utilities Code (excluding any late feesfees and interest charges), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such Bill or applicable portion thereof, as applicable▇▇▇▇; then (2B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of System Restoration Charges shall be allocated to the Issuer in accordance with the terms of the Charge RiderTariffs. If there is more than one owner of transition property, or if the sole or any owner of transition property (or pledge or pledgee) has issued multiple series of bonds, such partial collections representing system restoration charges shall be allocated among such owners (or pledgee or pledgees), and among such series of system restoration bonds, pro-rata based upon the amounts billed with respect to each series of system restoration bonds, provided that late fees and charges may be allocated to the Servicer as provided in the Tariff. It is understood that such allocations may be made on a delayed basis in accordance with the reconciliations described in Section 6 of this Annex. (iii) When and if the Service Area becomes subject to retail competition, the Servicer shall apply payments received to each Customer’s or any and each Applicable REP’s account in proportion to the charges contained on the outstanding ▇▇▇▇ to such Customer or Applicable REP. Any amounts collected by the Servicer that represent partial payments of the total ▇▇▇▇ to a Customer or any REP shall be allocated as follows: (A) first to amounts owed to the Issuer, ETI and any other affiliate of ETI which is owed “System Restoration Charges” as defined in Sections 39.302(7) whether as supplemented by 36.403(f) of the Financing Act or another section of the Utilities Code (excluding any late fees and interest charges), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such ▇▇▇▇; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of System Restoration Charges shall be allocated to the Issuer in accordance with the terms of the Tariffs. It is understood that such allocations may be made on a delayed basis in accordance with the reconciliations described in Section 6(e) of this Annex I. (iv) The Servicer shall hold all over-payments for the benefit of the Issuer and Kentucky Power ETI and shall apply such funds to future Bill ▇▇▇▇ charges in accordance with clauses (ii) and (iii) (as applicable) as such charges become due. (v) For Customers on a Budget Billing Plan, the Servicer shall treat Charge SRC Payments received from such Customers as if such Customers had been billed for their respective System Restoration Charges in the absence of the Budget Billing Plan; partial payment of a Budget Billing Plan payment shall be allocated according to clause (ii) or (iii) (as applicable) and overpayment of a Budget Billing Plan payment shall be allocated according to clause (iv).

Payment Processing; Allocation; Priority of Payments. (i) i. The Servicer shall post all payments received in respect of the Billed Charges to the applicable Customer accounts as promptly as practicable, and, in any event, substantially all such payments shall be posted in no event later than the third three (3rd3) Servicer Business Day Days after such payments are received by Servicerreceipt. (ii) Subject . If any Customer does not pay the full amount of any B▇▇▇ to clause (iii) belowthe Servicer, the amount paid by the Customer will be applied to all charges on the B▇▇▇, including without limitation electric service charges and all Storm Recovery Charges (under the Financing Order or future LPSC orders) and all similar securitization charges, based, as to a B▇▇▇ with charges covering more than one month, on the chronological order of billing, and, as to those charges with the same billing date, pro-rata. In addition, such partial collections representing Storm Recovery Charges and any other similar securitization charges shall be allocated among all such securitization bonds pro-rata based upon the amounts billed with respect to each issuance of securitization bonds, provided that late fees and charges may be allocated to the Servicer as provided in the Rate Schedule. iii. The Servicer shall apply payments received to each Customer’s account in proportion to the charges contained on the outstanding Bill B▇▇▇ to such Customer. (iii) So long as the Intercreditor Agreement is in effect, the Servicer shall allocate, or cause to the allocated, amounts owed to the Issuer and to the other recipients of remittances described therein in accordance with the terms of the Intercreditor Agreement. Any amounts collected by the Servicer that represent partial payments of, (A) if the Intercreditor Agreement remains in effect, the portion of the Bill allocable to Charges pursuant to the terms of the Intercreditor Agreement, or (total B) otherwise, the total Bill ▇▇▇ to a Customer, in each case Customer shall be allocated as follows: (1A) first to amounts owed to the Issuer, the Servicer Cleco Power and any other affiliate Affiliate of the Servicer Cleco Power which is owed “securitized surchargesStorm Recovery Charges” as defined in Section 278.670(20) of the Act and other fees and charges Securitization Law (excluding any late feesfees and interest charges), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such Bill or applicable portion thereof, as applicableB▇▇▇; then (2B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Storm Recovery Charges shall be allocated to the Issuer in accordance with the terms of the Charge Rider.Rate Schedules. If more than one series of Storm Recovery Bonds is outstanding, the Servicer shall allocate amounts owed to the Issuer ratably based on the total amount of Storm Recovery Charges on such b▇▇▇ which were billed in respect of each such series. It is understood that such allocations may be made on a delayed basis in accordance with the reconciliations described in Section 6(e) of this Annex I. (iv) . The Servicer shall hold all over-payments for the benefit of the Issuer and Kentucky Cleco Power and shall apply such funds to future Bill B▇▇▇ charges in accordance with clauses (ii) and (iii) (as applicable) as such charges become due. (v) v. For Customers on a Budget Billing Plan, the Servicer shall treat Charge Payments SRC Collections received from such Customers as if such Customers had been billed for their respective Storm Recovery Charges in the absence of the Budget Billing Plan; partial payment of a Budget Billing Plan payment shall be allocated according to clause (ii) or (iii) (as applicable) and overpayment of a Budget Billing Plan payment shall be allocated according to clause (iv).

Payment Processing; Allocation; Priority of Payments. (i) The Servicer shall post all payments received in respect of the Billed Charges to the applicable Customer accounts as promptly as practicable, and, in any event, substantially all such payments shall be posted in no event later than the third three (3rd3) Business Day Days after such payments are received by Servicerreceipt. (ii) Subject to clause (iii) below, the Servicer shall apply payments received to each Customer’s or each Applicable REP’s account in proportion to the charges contained on the outstanding Bill B▇▇▇ to such CustomerCustomer or Applicable REP. (iii) So long as the Intercreditor Agreement is in effect, the Servicer shall allocate, or cause to the allocated, amounts owed to the Issuer and to the other recipients of remittances described therein in accordance with the terms of the Intercreditor Agreement. Any amounts collected by the Servicer that represent partial payments of, (A) if the Intercreditor Agreement remains in effect, the portion of the Bill allocable to Charges pursuant to the terms of the Intercreditor Agreement, or (total B) otherwise, the total Bill ▇▇▇ to a Customer, in each case Customer or REP shall be allocated as follows: (1A) first to amounts owed to the Issuer, the Servicer TCC and any other affiliate of the Servicer TCC which is owed “securitized surchargestransition charges” as defined in Section 278.670(2039.302(7) of the Act and other fees and charges Securitization Law, (excluding any late feesfees and interest charges), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such Bill or applicable portion thereof, as applicableB▇▇▇; then (2B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Transition Charges shall be allocated to the Issuer in accordance with the terms of the Charge RiderTariff. As provided in the Intercreditor Agreement, if more than one issue of transition bonds issued under the Securitization Law is outstanding, the Servicer shall allocate, or cause to the allocated, amounts owed to the Issuer and to each other issuer of transition bonds ratably based upon the total amount of transition charges on such b▇▇▇ which were billed in respect to each such issue of transition bonds. (iv) The Servicer shall hold all over-payments for the benefit of the Issuer and Kentucky Power TCC and shall apply such funds to future Bill B▇▇▇ charges in accordance with clauses (ii) and (iii) as such charges become due. (v) For Customers on a Budget Billing Plan, the Servicer shall treat Charge TC Payments received from such Customers as if such Customers had been billed for their respective Transition Charges in the absence of the Budget Billing Plan; partial payment of a Budget Billing Plan payment shall be allocated according to clause (iii) and overpayment of a Budget Billing Plan payment shall be allocated according to clause (iv).

Payment Processing; Allocation; Priority of Payments. (i) The Servicer shall post all payments received in respect of the Billed Charges to the applicable Customer accounts as promptly as practicable, and, in any event, substantially all such payments shall be posted in no event later than the third (3rdA) one Servicer Business Day after such payments are received receipt by the Servicer if payment is made directly to the Servicer by a Customer, (B) two Servicer Business Days after receipt by a Thirty-Party Collector (other than an ARES or another electric utility) acting as agent for the Servicer, or (C) two Servicer Business Days after receipt by the Servicer from an ARES or another electric utility. (ii) Subject to clause (iii) below, the Servicer shall apply payments received to each Customer’s 's or Applicable ARES' account in proportion to the charges contained on the outstanding Bill ▇▇▇▇ to such CustomerCustomer or Applicable ARES. (iii) So long as the Intercreditor Agreement is in effect, the Servicer shall allocate, or cause to the allocated, amounts owed to the Issuer and to the other recipients of remittances described therein in accordance with the terms of the Intercreditor Agreement. Any amounts amount collected by the Servicer that represent partial payments of, (A) if the Intercreditor Agreement remains in effect, the portion of the Bill allocable to Charges pursuant to the terms of the Intercreditor Agreement, or (B) otherwise, the total Bill ▇▇▇▇ to a Customer, in each case Customer or ARES shall be allocated as follows: (1) first to amounts owed to the Issuer, the Servicer Note Issuer and any other affiliate of the Servicer which is owed “securitized surcharges” as defined in Section 278.670(20) of the Act and other fees and charges (excluding any late fees)Illinois Power, regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such Bill or applicable portion thereof, as applicable; then (2) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Charges shall be allocated to the Issuer in accordance with the terms of the Charge Rider▇▇▇▇. (iv) The Servicer shall hold all over-payments for the benefit of the Note Issuer and Kentucky Illinois Power and shall apply such funds to future Bill ▇▇▇▇ charges in accordance with clauses (ii) and (iii) above as such charges become due. (v) For Customers on a Budget Billing Levelized Payment Plan, the Servicer shall treat Charge IFC Payments received from such Customers as if such Customers had been billed for their respective Charges IFCs in the absence of the Budget Billing Levelized Payment Plan; partial payment of a Budget Billing Levelized Payment Plan payment shall be allocated according to clause (iii) above and overpayment of a Budget Billing Levelized Payment Plan payment shall be allocated according to clause (iv)) above.

Payment Processing; Allocation; Priority of Payments. (i) The Servicer shall post all payments received in respect of the Billed Charges to the applicable Customer accounts as promptly as practicable, and, in any event, substantially all such payments shall be posted in no event later than the third three (3rd3) Business Day Days after such payments are received by Servicerreceipt. (ii) Subject to clause (iii) below, the Servicer shall apply payments received to each Customer’s or each Applicable REP’s account in proportion to the charges contained on the outstanding Bill ▇▇▇▇ to such CustomerCustomer or Applicable REP. (iii) So long as the Intercreditor Agreement is in effect, the Servicer shall allocate, or cause to the allocated, amounts owed to the Issuer and to the other recipients of remittances described therein in accordance with the terms of the Intercreditor Agreement. Any amounts collected by the Servicer that represent partial payments of, (A) if the Intercreditor Agreement remains in effect, the portion of the Bill allocable to Charges pursuant to the terms of the Intercreditor Agreement, or (B) otherwise, the total Bill ▇▇▇▇ to a Customer, in each case Customer or REP shall be allocated as follows: (1A) first to amounts owed to the Issuer, the Servicer TCC and any other affiliate of the Servicer TCC which is owed “securitized surchargestransition charges” as defined in Section 278.670(2039.302(7) of the Act and other fees and charges Securitization Law, (excluding any late feesfees and interest charges), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such Bill or applicable portion thereof, as applicable▇▇▇▇; then (2B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Transition Charges shall be allocated to the Issuer in accordance with the terms of the Charge RiderTariffs. If more than one Series of Transition Bonds is outstanding, the Servicer shall allocate amounts owed to the Issuer ratably based on the total amount of Transition Charges on such ▇▇▇▇ which were billed in respect of each such Series. It is understood that such allocations may be made on a delayed basis in accordance with the reconciliations described in Section 6(e). (iv) The Servicer shall hold all over-payments for the benefit of the Issuer and Kentucky Power TCC and shall apply such funds to future Bill ▇▇▇▇ charges in accordance with clauses (ii) and (iii) as such charges become due. (v) For Customers on a Budget Billing Plan, the Servicer shall treat Charge TC Payments received from such Customers as if such Customers had been billed for their respective Transition Charges in the absence of the Budget Billing Plan; partial payment of a Budget Billing Plan payment shall be allocated according to clause (iii) and overpayment of a Budget Billing Plan payment shall be allocated according to clause (iv).

Payment Processing; Allocation; Priority of Payments. (i) i. The Servicer shall post all payments received in respect of the Billed Charges to the applicable Customer accounts as promptly as practicable, and, in any event, substantially all such payments shall be posted in no event later than the third three (3rd3) Servicer Business Day Days after such payments are received by Servicerreceipt. (ii) Subject . If any Customer does not pay the full amount of any ▇▇▇▇ to clause (iii) belowthe Servicer, the amount paid by the Customer will be applied to all charges on the ▇▇▇▇, including without limitation electric service charges and all Storm Recovery Charges (under the Financing Order or future LPSC orders) and all similar securitization charges, based, as to a ▇▇▇▇ with charges covering more than one month, on the chronological order of billing, and, as to those charges with the same billing date, pro-rata. In addition, such partial collections representing Storm Recovery Charges and any other similar securitization charges shall be allocated among all such securitization bonds pro-rata based upon the amounts billed with respect to each issuance of securitization bonds, provided that late fees and charges may be allocated to the Servicer as provided in the Rate Schedule. iii. The Servicer shall apply payments received to each Customer’s account in proportion to the charges contained on the outstanding Bill ▇▇▇▇ to such Customer. (iii) So long as the Intercreditor Agreement is in effect, the Servicer shall allocate, or cause to the allocated, amounts owed to the Issuer and to the other recipients of remittances described therein in accordance with the terms of the Intercreditor Agreement. Any amounts collected by the Servicer that represent partial payments of, (A) if the Intercreditor Agreement remains in effect, the portion of the Bill allocable to Charges pursuant to the terms of the Intercreditor Agreement, or (B) otherwise, the total Bill ▇▇▇▇ to a Customer, in each case Customer shall be allocated as follows: (1A) first to amounts owed to the Issuer, the Servicer Cleco Power and any other affiliate Affiliate of the Servicer Cleco Power which is owed “securitized surchargesStorm Recovery Charges” as defined in Section 278.670(20) of the Act and other fees and charges Securitization Law (excluding any late feesfees and interest charges), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such Bill or applicable portion thereof, as applicable▇▇▇▇; then (2B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Storm Recovery Charges shall be allocated to the Issuer in accordance with the terms of the Charge Rider.Rate Schedules. If more than one series of Storm Recovery Bonds is outstanding, the Servicer shall allocate amounts owed to the Issuer ratably based on the total amount of Storm Recovery Charges on such ▇▇▇▇ which were billed in respect of each such series. It is understood that such allocations may be made on a delayed basis in accordance with the reconciliations described in Section 6(e) of this Annex I. (iv) . The Servicer shall hold all over-payments for the benefit of the Issuer and Kentucky Cleco Power and shall apply such funds to future Bill ▇▇▇▇ charges in accordance with clauses (ii) and (iii) (as applicable) as such charges become due. (v) v. For Customers on a Budget Billing Plan, the Servicer shall treat Charge Payments SRC Collections received from such Customers as if such Customers had been billed for their respective Storm Recovery Charges in the absence of the Budget Billing Plan; partial payment of a Budget Billing Plan payment shall be allocated according to clause (ii) or (iii) (as applicable) and overpayment of a Budget Billing Plan payment shall be allocated according to clause (iv).

Payment Processing; Allocation; Priority of Payments. (i) The Servicer shall post all payments received in respect of the Billed Charges to the applicable Customer accounts as promptly as practicable, and, in any event, substantially all such payments shall be posted in no event later than the third two (3rd2) Business Day Days after such payments are received by Servicer. (ii) Subject to clause (iii) below, the Servicer shall apply payments received to each Customer’s account in proportion to the charges contained on the outstanding Bill to such Customer. (iii) So long as the Intercreditor Agreement is in effect, the Servicer shall allocate, or cause to the allocated, amounts owed to the Issuer and to the other recipients of remittances described therein in accordance with the terms of the Intercreditor Agreementreceipt. Any amounts collected by the Servicer that represent partial payments ofof the total ▇▇▇▇ to a Customer shall be applied by the Servicer in the following order of priority: (1) to any amounts due with respect to Customer deposits, (A2) if to all electric service charges of EAI on the Intercreditor Agreement remains in effect▇▇▇▇ other than Storm Recovery Charges, (3) to all Storm Recovery Charges on the portion of ▇▇▇▇; and (4) to tax and remaining charges billed to the Bill allocable Customers. Any amounts allocated to Charges Storm Recovery Charge payments pursuant to the terms of the Intercreditor Agreement, or (B3) otherwise, the total Bill to a Customer, in each case above shall be further allocated as follows: (1A) first to amounts owed to the Issuer, the Servicer EAI and any other affiliate of the Servicer EAI which is owed “securitized surchargesStorm Recovery Charges” as defined in Section 278.670(2023-18-902(14) of the Securitization Act and other fees and charges (excluding any late feesfees and interest charges), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such Bill or applicable portion thereof, as applicable▇▇▇▇; then (2B) all late payment charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of associated with Storm Recovery Charges shall be allocated paid to the Issuer in accordance with the terms of the Charge RiderIndenture Trustee. (ivii) The Servicer shall hold all over-payments for the benefit of the Issuer and Kentucky Power EAI and shall apply such funds to future Bill ▇▇▇▇ charges in accordance with clauses clause (ii) and (iiii) as such charges become due. (viii) For Customers on a Budget Billing Plan, the Servicer shall treat Charge SRC Payments received from such Customers as if such Customers had been billed for their respective Storm Recovery Charges in the absence of the Budget Billing Plan; partial payment of a Budget Billing Plan payment shall be allocated according to clause (iiii) and overpayment of a Budget Billing Plan payment shall be allocated according to clause (ivii).

Payment Processing; Allocation; Priority of Payments. (i) The Servicer shall post all payments received in respect of the Billed Charges to the applicable Customer accounts as promptly as practicable, and, in any event, substantially all such payments shall be posted in no event later than the third two (3rd2) Business Day Days after such payments are received by Servicer. (ii) Subject to clause (iii) below, the Servicer shall apply payments received to each Customer’s account in proportion to the charges contained on the outstanding Bill to such Customer. (iii) So long as the Intercreditor Agreement is in effect, the Servicer shall allocate, or cause to the allocated, amounts owed to the Issuer and to the other recipients of remittances described therein in accordance with the terms of the Intercreditor Agreementreceipt. Any amounts collected by the Servicer that represent partial payments ofof the total ▇▇▇▇ to a Customer shall be applied by the Servicer in the following order of priority: (1) to any amounts due with respect to Customer deposits, (A2) if to all electric service charges of EAI on the Intercreditor Agreement remains in effect▇▇▇▇ other than Storm Recovery Charges, (3) to all Storm Recovery Charges on the portion of ▇▇▇▇; and (4) to tax and remaining charges billed to the Bill allocable Customers. Any amounts allocated to Charges Storm Recovery Charge payments pursuant to the terms of the Intercreditor Agreement, or (B3) otherwise, the total Bill to a Customer, in each case above shall be further allocated as follows: (1A) first to amounts owed to the Issuer, the Servicer EAI and any other affiliate of the Servicer EAI which is owed “securitized surchargesStorm Recovery Charges” as defined in Section 278.670(2023-18-902(14) of the Securitization Act and other fees and charges (excluding any late feesfees and interest charges), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such Bill or applicable portion thereof, as applicable▇▇▇▇; then (2B) all late payment charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of associated with Storm Recovery Charges shall be allocated paid to the Issuer in accordance with the terms of the Charge RiderIndenture Trustee. (ivii) The Servicer shall hold all over-payments for the benefit of the Issuer and Kentucky Power EAI and shall apply such funds to future Bill ▇▇▇▇ charges in accordance with clauses clause (ii) and (iiii) as such charges become due. (viii) For Customers on a Budget Billing Plan, the Servicer shall treat Charge SRC Payments received from such Customers as if such Customers had been billed for their respective Storm Recovery Charges in the absence of the Budget Billing Plan; partial payment of a Budget Billing Plan payment shall be allocated according to clause (iiii) and overpayment of a Budget Billing Plan payment shall be allocated according to clause (ivii).. (c)

Payment Processing; Allocation; Priority of Payments. (i) The Servicer shall post all payments received in respect of the Billed Charges to the applicable Customer accounts as promptly as practicable, and, in any event, substantially all such payments shall be posted in no event later than the third three (3rd3) Business Day Days after such payments are received by Servicerreceipt. (ii) Subject to clause (iii) below, the Servicer shall apply payments received to each Customer’s or each Applicable Third-Party Collector’s account in proportion to the charges contained on the outstanding Bill ▇▇▇▇ to such CustomerCustomer or Applicable Third-Party Collector. (iii) So long as the Intercreditor Agreement is in effect, the Servicer shall allocate, or cause to the allocated, amounts owed to the Issuer and to the other recipients of remittances described therein in accordance with the terms of the Intercreditor Agreement. Any amounts collected by the Servicer that represent partial payments of, (A) if the Intercreditor Agreement remains in effect, the portion of the Bill allocable to Charges pursuant to the terms of the Intercreditor Agreement, or (B) otherwise, the total Bill to a Customer, in each case ▇▇▇▇ shall be allocated as follows: to gas and electric charges in accordance with applicable PSC Regulations. (1iv) first With respect to partial payments of the Electric ▇▇▇▇, such partial payments shall be allocated ratably, based on the amount owed for Billed QRSCs and other fees and charges, other than late charges, owed to the Servicer, and then to late charges. If more than one Series of Rate Stabilization Bonds is outstanding, the Servicer shall allocate amounts owed to the Issuer, the Servicer and any other affiliate of the Servicer which is owed “securitized surcharges” as defined in Section 278.670(20) of the Act and other fees and charges (excluding any late fees), regardless of age, pro rata in proportion to their respective percentages of Issuer ratably based on the total amount of their combined outstanding charges Qualified Rate Stabilization Charges on such Bill or applicable portion thereof, as applicable; then (2) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments ▇▇▇▇ which were billed in respect of Charges shall be allocated to the Issuer in accordance with the terms of the Charge Ridereach such Series. (ivv) The Servicer shall hold all over-payments for the benefit of the Issuer and Kentucky Power BGE and shall apply such funds to future Bill ▇▇▇▇ charges in accordance with clauses (ii) and (iii) as such charges become due. (vvi) For Customers on a Budget Billing Plan, the Servicer shall treat Charge Payments payments received from such Customers as if such Customers had been billed for their respective Qualified Rate Stabilization Charges in the absence of the Budget Billing Plan; partial payment of a Budget Billing Plan payment shall be allocated according to clause (iiiiv) and overpayment of a Budget Billing Plan payment shall be allocated according to clause (ivv).

Payment Processing; Allocation; Priority of Payments. (i) i. The Servicer shall post all payments received in respect of the Billed Charges to the applicable Customer accounts as promptly as practicable, and, in any event, substantially all such payments shall be posted in no event later than the third three (3rd3) Business Day Days after such payments are received by Servicerreceipt. ii. If any Customer does not pay the full amount of any Bill to the Servicer, the amount paid by the Customer will be applied to all charges on the Bill, including without limitation electric service charges and all Storm Recovery Charges, based, as to a Bill with charges covering more than one month, on the chronological order of billing, and, as to those charges with the same billing date, pro-rata. If there is more than one owner of Storm Recovery Property, or if the sole or any owner of Storm Recovery Property (iior pledgee or pledgees) Subject has issued multiple series of storm recovery bonds, such partial collections representing Storm Recovery Charges shall be allocated among such owners (or pledgee or pledgees), and among such series of storm recovery bonds, pro-rata based upon the amounts billed with respect to clause (each series of storm recovery bonds, provided that late fees and charges may be allocated to the Servicer as provided in the tariff. iii) below. When and if the service area becomes subject to retail competition, the Servicer shall apply payments received to each Customer’s 's or any and each Third-Party Collector's account in proportion to the charges contained on the outstanding Bill to such Customer. (iii) So long as the Intercreditor Agreement is in effect, the Servicer shall allocate, Customer or cause to the allocated, amounts owed to the Issuer and to the other recipients of remittances described therein in accordance with the terms of the Intercreditor AgreementThird-Party Collector. Any amounts collected by the Servicer that represent partial payments of, (A) if the Intercreditor Agreement remains in effect, the portion of the Bill allocable to Charges pursuant to the terms of the Intercreditor Agreement, or (B) otherwise, the total Bill to a Customer, in each case Customer or any Third-Party Collector shall be allocated as follows: (1A) first to amounts owed to the Issuer, the Servicer Cleco Power and any other affiliate Affiliate of the Servicer Cleco Power which is owed “securitized surcharges” "Storm Recovery Charges" as defined in Section 278.670(20) of the Act and other fees and charges Securitization Law (excluding any late feesfees and interest charges), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such Bill or applicable portion thereof, as applicableBill; then (2B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Storm Recovery Charges shall be allocated to the Issuer in accordance with the terms of the Charge Rider.Tariffs. If more than one series of Storm Recovery Bonds is outstanding, the Servicer shall allocate amounts owed to the Issuer ratably based on the total amount of Storm Recovery Charges on such bill which were billed in respect of each such series. It is understood that such allocations may be made on a delayed basis in accordance with the reconciliations described in Section 6(e) of this Annex I. (iv) . The Servicer shall hold all over-payments for the benefit of the Issuer and Kentucky Cleco Power and shall apply such funds to future Bill charges in accordance with clauses (ii) and (iii) (as applicable) as such charges become due. (v) v. For Customers on a Budget Billing Plan, the Servicer shall treat Charge Payments SRC Collections received from such Customers as if such Customers had been billed for their respective Storm Recovery Charges in the absence of the Budget Billing Plan; partial payment of a Budget Billing Plan payment shall be allocated according to clause (ii) or (iii) (as applicable) and overpayment of a Budget Billing Plan payment shall be allocated according to clause (iv).

Payment Processing; Allocation; Priority of Payments. (i) i. The Servicer shall post all payments received in respect of the Billed Charges to the applicable Customer accounts as promptly as practicable, and, in any event, substantially all such payments shall be posted in no event later than the third three (3rd3) Business Day Days after such payments are received by Servicerreceipt. ii. If any Customer does not pay the full amount of any ▇▇▇▇ to the Servicer, the amount paid by the Customer will be applied to all charges on the ▇▇▇▇, including without limitation electric service charges and all Storm Recovery Charges, based, as to a ▇▇▇▇ with charges covering more than one month, on the chronological order of billing, and, as to those charges with the same billing date, pro-rata. If there is more than one owner of Storm Recovery Property, or if the sole or any owner of Storm Recovery Property (iior pledgee or pledgees) Subject has issued multiple series of storm recovery bonds, such partial collections representing Storm Recovery Charges shall be allocated among such owners (or pledgee or pledgees), and among such series of storm recovery bonds, pro-rata based upon the amounts billed with respect to clause (each series of storm recovery bonds, provided that late fees and charges may be allocated to the Servicer as provided in the tariff. iii) below. When and if the service area becomes subject to retail competition, the Servicer shall apply payments received to each Customer’s or any and each Third-Party Collector’s account in proportion to the charges contained on the outstanding Bill ▇▇▇▇ to such Customer. (iii) So long as the Intercreditor Agreement is in effect, the Servicer shall allocate, Customer or cause to the allocated, amounts owed to the Issuer and to the other recipients of remittances described therein in accordance with the terms of the Intercreditor AgreementThird-Party Collector. Any amounts collected by the Servicer that represent partial payments of, (A) if the Intercreditor Agreement remains in effect, the portion of the Bill allocable to Charges pursuant to the terms of the Intercreditor Agreement, or (B) otherwise, the total Bill ▇▇▇▇ to a Customer, in each case Customer or any Third-Party Collector shall be allocated as follows: (1A) first to amounts owed to the Issuer, the Servicer Cleco Power and any other affiliate Affiliate of the Servicer Cleco Power which is owed “securitized surchargesStorm Recovery Charges” as defined in Section 278.670(20) of the Act and other fees and charges Securitization Law (excluding any late feesfees and interest charges), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such Bill or applicable portion thereof, as applicable▇▇▇▇; then (2B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Storm Recovery Charges shall be allocated to the Issuer in accordance with the terms of the Charge Rider.Tariffs. If more than one series of Storm Recovery Bonds is outstanding, the Servicer shall allocate amounts owed to the Issuer ratably based on the total amount of Storm Recovery Charges on such ▇▇▇▇ which were billed in respect of each such series. It is understood that such allocations may be made on a delayed basis in accordance with the reconciliations described in Section 6(e) of this Annex I. (iv) . The Servicer shall hold all over-payments for the benefit of the Issuer and Kentucky Cleco Power and shall apply such funds to future Bill ▇▇▇▇ charges in accordance with clauses (ii) and (iii) (as applicable) as such charges become due. (v) v. For Customers on a Budget Billing Plan, the Servicer shall treat Charge Payments SRC Collections received from such Customers as if such Customers had been billed for their respective Storm Recovery Charges in the absence of the Budget Billing Plan; partial payment of a Budget Billing Plan payment shall be allocated according to clause (ii) or (iii) (as applicable) and overpayment of a Budget Billing Plan payment shall be allocated according to clause (iv).

Payment Processing; Allocation; Priority of Payments. (i) The Servicer shall post all payments received in respect of the Billed Charges to the applicable Customer accounts as promptly as practicable, and, in any event, substantially all such payments shall be posted in no event later than the third three (3rd3) Business Day Days after such payments are received by Servicerreceipt. (ii) Subject to clause (iii) below, the Servicer shall apply payments received to each Customer’s or each Applicable Third-Party Collector’s account in proportion to the charges contained on the outstanding Bill B▇▇▇ to such CustomerCustomer or Applicable Third-Party Collector. (iii) So long as the Intercreditor Agreement is in effect, the Servicer shall allocate, or cause to the allocated, amounts owed to the Issuer and to the other recipients of remittances described therein in accordance with the terms of the Intercreditor Agreement. Any amounts collected by the Servicer that represent partial payments of, (A) if the Intercreditor Agreement remains in effect, the portion of the Bill allocable to Charges pursuant to the terms of the Intercreditor Agreement, or (total B) otherwise, the total Bill to a Customer, in each case ▇▇▇ shall be allocated as follows: to gas and electric charges in accordance with applicable PSC Regulations. (1iv) first With respect to partial payments of the Electric B▇▇▇, such partial payments shall be allocated ratably, based on the amount owed for Billed QRSCs and other fees and charges, other than late charges, owed to the Servicer, and then to late charges. If more than one Series of Rate Stabilization Bonds is outstanding, the Servicer shall allocate amounts owed to the Issuer, the Servicer and any other affiliate of the Servicer which is owed “securitized surcharges” as defined in Section 278.670(20) of the Act and other fees and charges (excluding any late fees), regardless of age, pro rata in proportion to their respective percentages of Issuer ratably based on the total amount of their combined outstanding charges Qualified Rate Stabilization Charges on such Bill or applicable portion thereof, as applicable; then (2) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments b▇▇▇ which were billed in respect of Charges shall be allocated to the Issuer in accordance with the terms of the Charge Ridereach such Series. (ivv) The Servicer shall hold all over-payments for the benefit of the Issuer and Kentucky Power BGE and shall apply such funds to future Bill B▇▇▇ charges in accordance with clauses (ii) and (iii) as such charges become due. (vvi) For Customers on a Budget Billing Plan, the Servicer shall treat Charge Payments payments received from such Customers as if such Customers had been billed for their respective Qualified Rate Stabilization Charges in the absence of the Budget Billing Plan; partial payment of a Budget Billing Plan payment shall be allocated according to clause (iiiiv) and overpayment of a Budget Billing Plan payment shall be allocated according to clause (ivv).

Payment Processing; Allocation; Priority of Payments. (i) The Servicer shall post all payments received in respect of the Billed Charges to the applicable Customer accounts as promptly as practicable, and, in any event, substantially all such payments shall be posted in no event later than the third three (3rd3) Business Day Days after such payments are received by Servicer. (ii) Subject to clause (iii) belowreceipt. Until retail competition is introduced into the Service Area, the Servicer shall apply payments received to each Customer’s account in proportion to the charges contained on the outstanding Bill to such Customer. (iii) So long as the Intercreditor Agreement is in effect, the Servicer shall allocate, or cause to the allocated, amounts owed to the Issuer and to the other recipients of remittances described therein in accordance with the terms of the Intercreditor Agreement. Any any amounts collected by the Servicer that represent partial payments ofof the total ▇▇▇▇ to a Customer shall be applied by the Servicer in the following order of priority: (1) to any amounts due with respect to customer deposits, (A2) if to all electric service charges of EGSI on the Intercreditor Agreement remains in effect▇▇▇▇ and to all Transition Charges on the ▇▇▇▇, pro rata based upon the portion of total amount billed, and (3) to tax and remaining charges billed to the Bill allocable Customers. Any amounts allocated to Charges Transition Charge payments pursuant to the terms of the Intercreditor Agreement, or (B2) otherwise, the total Bill to a Customer, in each case above shall be further allocated as follows: (1A) first to amounts owed to the Issuer, the Servicer EGSI and any other affiliate of the Servicer EGSI which is owed “securitized surcharges” "Transition Charges" as defined in Section 278.670(20Sections 39.302(7) and 39.460(f) of the Act and other fees and charges Securitization Law (excluding any late feesfees and interest charges), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such Bill or applicable portion thereof, as applicable▇▇▇▇; then (2B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Transition Charges shall be allocated to the Issuer in accordance with the terms of the Charge Rider. Tariffs. If more than one Series of Transition Bonds is outstanding, the Servicer shall allocate amounts owed to the Issuer ratably based on the total amount of Transition Charges on such ▇▇▇▇ which were billed in respect of each such Series. It is understood that such allocations may be made on a delayed basis in accordance with the reconciliations described in Section 6 of this Annex. When and if the Service Area becomes subject to retail competition, the Servicer shall apply payments received to each Customer's or any and each Applicable REP's account in proportion to the charges contained on the outstanding ▇▇▇▇ to such Customer or Applicable REP. Any amounts collected by the Servicer that represent partial payments of the total ▇▇▇▇ to a Customer or any REP shall be allocated as follows: (ivA) first to amounts owed to the Issuer, EGSI and any other affiliate of EGSI which is owed "Transition Charges" as defined in Sections 39.302(7) and 39.460(f) of the Securitization Law (excluding any late fees and interest charges), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such ▇▇▇▇; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Transition Charges shall be allocated to the Issuer in accordance with the terms of the Tariffs. If more than one Series of Transition Bonds is outstanding, the Servicer shall allocate amounts owed to the Issuer ratably based on the total amount of Transition Charges on such ▇▇▇▇ which were billed in respect of each such Series. It is understood that such allocations may be made on a delayed basis in accordance with the reconciliations described in Section 6(e) of this Annex I. The Servicer shall hold all over-payments for the benefit of the Issuer and Kentucky Power EGSI and shall apply such funds to future Bill ▇▇▇▇ charges in accordance with clauses (ii) and (iii) (as applicable) as such charges become due. (v) . For Customers on a Budget Billing Plan, the Servicer shall treat Charge TC Payments received from such Customers as if such Customers had been billed for their respective Transition Charges in the absence of the Budget Billing Plan; partial payment of a Budget Billing Plan payment shall be allocated according to clause (ii) or (iii) (as applicable) and overpayment of a Budget Billing Plan payment shall be allocated according to clause (iv).

Payment Processing; Allocation; Priority of Payments. (i) The Servicer shall post all payments received in respect of the Billed Charges to the applicable Customer accounts as promptly as practicable, and, in any event, substantially all such payments shall be posted in no event later than the third three (3rd3) Business Day Days after such payments are received by Servicerreceipt. (ii) Subject to clause (iii) belowUntil retail competition is introduced into the Service Area, the Servicer shall apply payments received to each Customer’s account in proportion to the charges contained on the outstanding Bill to such Customer. (iii) So long as the Intercreditor Agreement is in effect, the Servicer shall allocate, or cause to the allocated, amounts owed to the Issuer and to the other recipients of remittances described therein in accordance with the terms of the Intercreditor Agreement. Any any amounts collected by the Servicer that represent partial payments ofof the total B▇▇▇ to a Customer shall be applied by the Servicer in the following order of priority: (1) to any amounts due with respect to customer deposits, (A2) if to all electric service charges of ETI on the Intercreditor Agreement remains in effectB▇▇▇ and to all Transition Charges on the B▇▇▇, pro rata based upon the portion of total amount billed, and (3) to tax and remaining charges billed to the Bill allocable Customers. Any amounts allocated to Charges Transition Charge payments pursuant to the terms of the Intercreditor Agreement, or (B2) otherwise, the total Bill to a Customer, in each case above shall be further allocated as follows: (1A) first to amounts owed to the Issuer, the Servicer ETI and any other affiliate of the Servicer ETI which is owed “securitized surchargesTransition Charges” as defined in Section 278.670(2039.302(7) whether as supplemented by 36.403(f) of the Act and other fees and charges Securitization Law or another section of the Utilities Code (excluding any late feesfees and interest charges), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such Bill or applicable portion thereof, as applicableB▇▇▇; then (2B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Transition Charges shall be allocated to the Issuer in accordance with the terms of the Charge RiderTariffs. It is understood that such allocations may be made on a delayed basis in accordance with the reconciliations described in Section 6 of this Annex. (iii) When and if the Service Area becomes subject to retail competition, the Servicer shall apply payments received to each Customer’s or any and each Applicable REP’s account in proportion to the charges contained on the outstanding B▇▇▇ to such Customer or Applicable REP. Any amounts collected by the Servicer that represent partial payments of the total B▇▇▇ to a Customer or any REP shall be allocated as follows: (A) first to amounts owed to the Issuer, ETI and any other affiliate of ETI which is owed “Transition Charges” as defined in Sections 39.302(7) whether as supplemented by 36.403(f) of the Securitization Law or another section of the Utilities Code (excluding any late fees and interest charges), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such B▇▇▇; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Transition Charges shall be allocated to the Issuer in accordance with the terms of the Tariffs. It is understood that such allocations may be made on a delayed basis in accordance with the reconciliations described in Section 6(e) of this Annex I. (iv) The Servicer shall hold all over-payments for the benefit of the Issuer and Kentucky Power ETI and shall apply such funds to future Bill B▇▇▇ charges in accordance with clauses (ii) and (iii) (as applicable) as such charges become due. (v) For Customers on a Budget Billing Plan, the Servicer shall treat Charge TC Payments received from such Customers as if such Customers had been billed for their respective Transition Charges in the absence of the Budget Billing Plan; partial payment of a Budget Billing Plan payment shall be allocated according to clause (ii) or (iii) (as applicable) and overpayment of a Budget Billing Plan payment shall be allocated according to clause (iv).