Common use of Payments on the Bonds Clause in Contracts

Payments on the Bonds. If, while this Pledge Agreement is in effect, the Borrower shall become entitled to receive or shall receive any principal or interest payment in respect of the Pledged Bonds, the Borrower agrees to accept the same as the Bank's agent and to hold the same in trust on behalf of the Bank and to deliver the same forthwith to the Bank. All sums of money so paid in respect of the Pledged Bonds which are received by the Borrower and paid to the Bank shall be credited against the obligations of the Borrower to the Bank in the manner set forth in Paragraph 3 of the Credit Agreement. So long as no Default or Event of Default has occurred and is continuing, any amounts received by the Bank in respect of the stated interest on any Pledged Bonds in excess of the amounts then owing the Bank pursuant to Paragraph 3A(i)(2) of the Credit Agreement shall be remitted to the Borrower.