Post Default Allocation of Payments Clause Samples
The Post-Default Allocation of Payments clause defines how payments received after a default event are distributed among parties. Typically, this clause establishes a priority order, such as first covering outstanding fees and expenses, then accrued interest, and finally principal amounts. By clearly specifying the sequence and manner in which funds are allocated following a default, this clause ensures fairness and predictability, reducing disputes and clarifying the rights of creditors in distressed situations.
Post Default Allocation of Payments. Notwithstanding anything herein to the contrary (but subject to the Intercreditor Agreement), during an Event of Default, all funds transferred to the Concentration Accounts and for which the applicable Borrower has received credits, together with all monies received by the Administrative Agent, the Canadian Agent or any Lender, whether arising from payments by the Loan Parties, realization on Collateral, the Montrovest LC, setoff or otherwise, shall be allocated as follows:
(a) first, pro rata to all costs and expenses (including Extraordinary Expenses) owing to the Agents and the Co-Collateral Agents;
(b) second, to all amounts owing to the Agents on Swingline Loans, US Revolver Overadvances, Canadian Revolver Overadvances and Protective Advances;
(c) third, to all Obligations constituting fees owing to the Lenders (excluding amounts relating to Bank Products);
(d) fourth, to all Obligations constituting interest on Revolver Loans (excluding amounts relating to Bank Products);
(e) fifth, pro rata to all Obligations constituting principal of Revolver Loans (excluding amounts relating to Bank Products), to all amounts owing to the Issuing Banks on US LC Obligations and Canadian LC Obligations and to provide Cash Collateral for outstanding Letters of Credit;
(f) sixth, to all other Obligations (other than Bank Product Debt);
(g) seventh, to Bank Product Debt constituting Obligations for which a Bank Product Reserve has been established; and
(h) eighth, to Bank Product Debt constituting Obligations for which a Bank Product Reserve has not been established. Amounts shall be applied to each category of Obligations set forth above until the payment in full thereof and then to the next category. If amounts are insufficient to satisfy a category, they shall be applied on a pro rata basis among the Obligations in the category. Amounts distributed with respect to any Bank Product Debt, US LC Obligations or Canadian LC Obligations shall be the lesser of the applicable US LC Obligations, Canadian LC Obligations or Bank Product Amount last reported to the Agents or the actual US LC Obligations, Canadian LC Obligations or Bank Product Debt as calculated by the methodology reported to the Agents for determining the amount due. The Agents shall have no obligation to calculate the amount to be distributed with respect to any Bank Product Debt, but may rely upon written notice of the amount (setting forth a reasonably detailed calculation) from the Secured Party. In the ab...
Post Default Allocation of Payments. Notwithstanding anything herein to the contrary, during an Event of Default, monies to be applied to the Obligations, whether arising from payments by Borrower, Guarantor or any other Person, setoff, or otherwise, shall be allocated as follows:
(a) first, to all costs and expenses owing to Agent;
(b) second, to all amounts owing to Agent on Swingline Loans;
(c) third, to all amounts owing to Agent with respect to that portion of the Letter of Credit Obligations which constitutes unreimbursed draws under Letters of Credit;
(d) fourth, to all Obligations constituting fees accruing hereunder and under the other Loan Documents;
(e) fifth, to all Obligations constituting interest accruing hereunder and under the other Loan Documents;
(f) sixth, to the cash collateralization of that portion of the Letter of Credit Obligations constituting undrawn amounts under outstanding Letters of Credit (up to 105% thereof);
(g) seventh, to all other Obligations, other than Bank Product Obligations; and
(h) last, to Bank Product Obligations.
Post Default Allocation of Payments. 5.6.1. Allocation
(a) first, to all costs and expenses, including Extraordinary Expenses, owing to Agent;
(b) second, to all amounts owing to Agent on Swingline Loans or Protective Advances;
(c) third, to all amounts owing to Issuing Bank on LC Obligations;
(d) fourth, to all Obligations constituting fees (excluding amounts relating to Bank Products);
(e) fifth, to all Obligations constituting interest (excluding amounts relating to Bank Products);
(f) sixth, to provide Cash Collateral for outstanding Letters of Credit;
(g) seventh, to all other Obligations, other than Bank Product Debt; and
(h) last, to Bank Product Debt. Amounts shall be applied to each category of Obligations set forth above until Full Payment thereof and then to the next category. If amounts are insufficient to satisfy a category, they shall be applied on a pro rata basis among the Obligations in the category. The allocations set forth in this Section are solely to determine the rights and priorities of Agent and Lenders as among themselves, and may be changed by agreement among them without the consent of any Obligor. This Section is not for the benefit of or enforceable by any Borrower.
Post Default Allocation of Payments. Notwithstanding anything herein or in any other Loan Document to the contrary, during an Event of Default, if so directed by the Required Lenders or at Administrative Agent's discretion, monies to be applied to the Obligations, whether arising from payments by Loan Parties, realization on Collateral, setoff, or otherwise, shall be allocated as follows:
Post Default Allocation of Payments
Post Default Allocation of Payments