Common use of Proceeds of Realization Clause in Contracts

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.