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, during an Event of Default, monies to be applied to the Obligations, whether arising from payments by Obligors, realization on Collateral, setoff or otherwise, shall be allocated as follows:
(a) first, to all fees, indemnification, costs and expenses, including Extraordinary Expenses, owing to Agent;
(b) second, to all amounts owing to Agent on Swingline Loans, or on Agent Advances or other Loans for which Agent has not been reimbursed by a Lender;
(c) third, to all amounts owing to Letter of Credit Issuer;
(d) fourth, to all Obligations constituting fees, expense reimbursements or indemnification owing to Lenders (other than Secured Bank Product Obligations);
(e) fifth, to all Obligations constituting interest (other than Secured Bank Product Obligations);
(f) sixth, to Cash Collateralization of Letter of Credit Obligations;
(g) seventh, to all Loans and Noticed ▇▇▇▇▇▇ (including Cash Collateralization thereof) up to the amount of Reserves existing therefor;
(h) eighth, to all other Secured Bank Product Obligations (other than Noticed ▇▇▇▇▇▇ that have been reserved under clause (g) above); and
(i) last, to all other Obligations. 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. Amounts distributed with respect to any Secured Bank Product Obligations shall be the maximum Secured Bank Product Obligations last reported to Agent. Agent shall have no obligation to calculate the amount to be distributed with respect to any Secured Bank Product Obligations, and may request a reasonably detailed calculation of such amount from the applicable Secured Party. If a Secured Party fails to deliver such calculation within five days following request by Agent, Agent may assume the amount to be distributed is the maximum Secured Bank Product Obligations last reported to Agent. The allocations set forth in this Section are solely to determine the rights and priorities of Agent and Secured Parties 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 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