Proceeds of Realization Clause Samples
The "Proceeds of Realization" clause defines how any funds or assets obtained from the sale, liquidation, or disposal of collateral or secured assets are to be handled. Typically, this clause outlines the order in which creditors or parties are paid from these proceeds, such as covering costs of enforcement first, then repaying outstanding debts, and distributing any surplus as specified in the agreement. Its core function is to ensure a clear and fair process for distributing realized assets, thereby minimizing disputes and providing certainty to all parties involved in the event of asset realization.
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Proceeds of Realization. The Lender and, if appointed, the Agent may apply any proceeds of realization of the Collateral to payment of costs, fees and expenses in connection with the preservation and realization of the Collateral as above described and the Lender and, if appointed, the Agent may apply any balance of such proceeds to payment of the Obligations in such order as the Lender or the Agent sees fit. If there is any surplus remaining, the Lender or the Agent may pay it to any person having a claim thereto in priority to the Borrower of whom the Lender or the Agent has knowledge and any balance remaining must be paid to the Borrower. If the disposition of the Collateral fails to satisfy the Obligations secured by this Agreement and the aforesaid expenses, the Borrower will be liable to pay any deficiency to the Lender forthwith on demand.
Proceeds of Realization. The Bank may apply any proceeds of realization of the Collateral to payment of costs, fees and expenses mentioned in Section 2.2(j), including those related to the realization of the Collateral, and the Bank may apply any balance to payment of all other Obligations in such order as the Bank sees fit. If there is any surplus remaining, the Bank may pay it to any person entitled thereto by law of whom the Bank has knowledge and any balance remaining may be paid to the Debtor. If the realization of the Collateral fails to satisfy the Obligations, the Debtor will be liable to pay any deficiency to the Bank.
Proceeds of Realization. Subject to the claims, if any, of the creditors of the Debtor ranking in priority to this Security Agreement, all amounts realized from the disposition of Collateral pursuant to this Security Agreement will be applied as the Secured Party, in its absolute discretion, may direct or as follows:
(a) in payment of all costs, charges and expenses (including legal fees and disbursements on a solicitor and his own client basis) incurred by the Secured Party in connection with or incidental to:
(1) the exercise by the Secured Party of all or any of the powers granted to it pursuant to this Security Agreement; and
(2) the appointment of the Receiver and the exercise by the Receiver of all or any of the powers granted to it pursuant to this Security Agreement, including the Receiver’s reasonable remuneration and all outgoings properly payable by the Receiver excluding the Receiver’s borrowings;
(b) in payment of any sum or sums borrowed by the Receiver from the Secured Party and interest thereon if such sum or sums are secured by the Collateral;
(c) in or toward payment to the Secured Party of all principal and other monies (except interest) due in respect of the Secured Obligations;
(d) in or toward payment to the Secured Party of all interest remaining unpaid in respect of the Secured Obligations; and
(e) in or toward payment of any sum or sums borrowed by the Receiver from any financial institution, corporation or person other than the Secured Party and interest thereon if such sum or sums are secured by the Collateral. Subject to applicable law and the claims, if any, of other creditors of the Debtor, any surplus will be paid to the Debtor.
Proceeds of Realization. The Secured Party may apply any proceeds of realization of the Collateral to payment of costs, fees and expenses, including those related to the realization of the Collateral, and the Secured Party may apply any balance to payment of all other Obligations in such order as the Secured Party sees fit. If there is any surplus remaining, the Secured Party may pay it to any person entitled thereto by law of whom the Secured Party has knowledge and any balance remaining may be paid to the Debtor. If the realization of the Collateral fails to satisfy the Obligations, the Debtor will be liable to pay any deficiency to the Secured Party.
Proceeds of Realization. All moneys received by the Security Trustee and/or any Receiver arising from any such sale, letting, leasing, calling in, collection, dealing or other disposition under the powers conferred upon the Security Trustee and/or upon any Receiver, after the security hereby created has become enforceable, shall be held upon trust and applied in accordance with Clause 4.1 of the Security Trust Deed but so that if and for so long as the Chargor has any future or contingent liability to the Security Trustee, the Security Trustee may place and keep any such moneys to the credit of such interest bearing account or accounts, in such name or names, as the Security Trustee may deem fit, without obligation to apply the same as mentioned above until all such liability is ascertained and due, and the same shall form part of the Charged Assets.
Proceeds of Realization. All amounts received by the Administrative Agent from or on behalf of the Loan Parties and not previously applied pursuant to this Agreement shall be held by the Administrative Agent for the rateable benefit of itself and the Secured Parties in accordance with the provisions hereof and shall be applied and distributed, and the claims of the Administrative Agent and the Secured Parties shall be deemed to have the relative priorities which would result in the amounts being applied and distributed, as follows:
(a) firstly, to the payment of all reasonable costs and expenses incurred by or on behalf of the Administrative Agent (including, without limitation, all legal fees and disbursements) in the exercise of all or any of the powers granted to it hereunder or under the Security Documents;
(b) secondly, to the payment or prepayment of the Secured Obligations (including holding as cash collateral to be applied against Secured Obligations which have not then matured) on a pari passu basis; and
(c) the balance, if any, to the Borrower or as otherwise required in accordance with Applicable Law.
Proceeds of Realization. (1) The Collateral Agent will apply any proceeds of realization of the Collateral in accordance with Section 6(g) of the Note. If there is any surplus remaining, the Collateral Agent may pay it to any person entitled thereto by Applicable Law of whom the Collateral Agent has knowledge and any balance remaining may be paid to the Debtors. If the realization of the Collateral fails to satisfy the Obligations, the Debtors will be liable to pay any deficiency to the Collateral Agent.
Proceeds of Realization. (1) The Noteholder will apply any proceeds of realization of the Collateral in accordance with Section 9(h) of the Note Purchase Agreement. If there is any surplus remaining, the Noteholder may pay it to any person entitled thereto by Applicable Law of whom the Noteholder has knowledge and any balance remaining may be paid to the Debtors. If the realization of the Collateral fails to satisfy the Obligations, the Debtors will be liable to pay any deficiency to the Noteholder.
Proceeds of Realization. The proceeds of realization under any of the Loan Documents or any credit or compensating balances of the Borrower held by any Lender shall be applied as set forth under the Interlender Agreement.
Proceeds of Realization. Notwithstanding any provision to the contrary contained in any Security or in any other document, instrument or agreement, all Realization Proceeds with respect to the Sarasvati Priority Collateral shall, subject to applicable law, be applied and distributed as follows:
(a) firstly, on account of the costs and expenses, if any, incurred in connection with the sale, collection and realization of the Sarasvati Security; and
(b) secondly, on account of Sarasvati Indebtedness until repaid in full.