Application of Net Proceeds Sample Clauses
The "Application of Net Proceeds" clause defines how the net proceeds from a specific transaction, such as a sale or insurance recovery, are to be distributed or used. Typically, this clause outlines the order of priority for payments, such as first satisfying outstanding debts, reimbursing expenses, or distributing remaining funds among stakeholders. Its core practical function is to ensure transparency and fairness in the allocation of funds, preventing disputes by clearly specifying how proceeds are handled.
Application of Net Proceeds. The Company shall apply the net proceeds from the Offering received by it in a manner consistent with the application thereof described under the caption “Use of Proceeds” in the Registration Statement, the Pricing Disclosure Package and the Prospectus.
Application of Net Proceeds. The Company will apply the net proceeds from the Private Placement and this Offering received by it in a manner substantially consistent with the application described under the caption “Use Of Proceeds” in the Prospectus.
Application of Net Proceeds. The Net Proceeds of any insurance proceeds or condemnation award resulting from any event described in Section 6.1 hereof shall be immediately deposited in a separate trust fund to be held by the Trustee. All Net Proceeds so deposited shall be applied in one or more of the following ways as shall be elected by the Company in a written notice to the Trustee, which notice shall be received by the Trustee within 60 days after the receipt by the Company or the Trustee, as the case may be, of the Net Proceeds:
(a) To the prompt repair, restoration, modification or improvement of the Project Facility, and the Issuer has, in the Indenture, authorized and directed the Trustee to make disbursements from such separate trust fund for such purposes. Such disbursements shall be made by the Trustee only upon receipt of Requisitions therefor. Any balance of the Net Proceeds remaining after such work has been completed shall be transferred into the Bond Fund to be applied in accordance with subsection (b) of this Section, or if the Bonds have been fully paid (or provision for payment thereof has been made in accordance with the provisions of the Indenture), any balance remaining in such separate trust fund shall be paid in accordance with Section 6.11 of the Indenture.
(b) To the redemption at par of the Bonds, pro rata in proportion to their respective then outstanding principal balances, on the earliest practicable redemption date as specified in a written notice by the Company to the Trustee, provided that no part of such Net Proceeds may be applied for such redemption unless (1) all of the Bonds are to be redeemed in accordance with the Indenture upon termination of this Agreement pursuant to clauses (A) or (B) of Article X hereof or (2) in the event that less than all of the Bonds are to be redeemed, the Company shall furnish to the Trustee a certificate of a Company Representative stating that
(i) the property forming the part of the Project Facility that was damaged or destroyed by such casualty or was taken by such condemnation proceedings is not essential to the use, operation or possession of the Project by the Company or (ii) the Project Facility has been repaired, restored, modified or improved to operate as designed.
(c) If the Company elects to repair, restore, modify or improve the Project Facility or pay the cost thereof and fails to do so diligently, the Issuer or the Trustee may (but shall be under no obligation to) do so on behalf of the Company and rec...
Application of Net Proceeds. The section of the Prospectus, “Use of Proceeds,” will indicate the intended uses of the net proceeds from the Offering. The Company will apply the net proceeds from the Offering received by it in a manner consistent with the application described under the caption “Use of Proceeds” in the Prospectus.
Application of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings or by any proceeding or purchase in lieu of condemnation, Lender may at its election require that all or any portion of the net proceeds of the award be applied to the Indebtedness or the repair or restoration of the Property. The net proceeds of the award shall mean the award after payment of all reasonable costs, expenses, and attorneys' fees incurred by Lender in connection with the condemnation.
Application of Net Proceeds. The Company will apply the net proceeds from the Offering received by it in a manner substantially consistent with the application described under the caption “Use of Proceeds” in the Prospectus Supplement.
Application of Net Proceeds. The Company will apply the net proceeds received from the sale of the Units in all material respects as set forth in the Prospectus under the caption “Use of Proceeds.”
Application of Net Proceeds. (a) All Net Proceeds with respect to an Individual Property shall (subject to the terms of any Lease, mortgage or deed of trust that is senior to the applicable Mortgage) be paid directly to Lender and held by Lender in the Deposit Account and shall constitute additional security for the Debt. At Lender’s sole and absolute discretion, such Net Proceeds may either (i) remain in the Deposit Account as additional security for the Debt, (ii) be made available to the applicable Borrower Subsidiary for the Restoration, (iii) be retained and applied by Lender toward the payment of the Debt whether or not then due and payable in such order, priority and proportions as Lender in its sole and absolute discretion shall deem proper, or (iv) the same may be paid, either in whole or in part, to Borrower or the applicable Borrower Subsidiary for such purposes as Lender shall approve, in its discretion.
(b) With respect to a Mortgage Loan, during the continuance of an Event of Default, Lender, at its option, may, subject to the terms of the Mortgage Loan Documents (and subject to the terms of any Lease, mortgage or deed of trust that is senior to the applicable Pledged Mortgage), withdraw all the Net Proceeds (together with any and all other amounts required to be delivered to or deposited with Borrower pursuant to the Mortgage Loan Documents upon the occurrence of a Casualty or Condemnation) or the undisbursed balance thereof deposited with Lender and may apply such Net Proceeds (together with any and all other amounts required to be delivered to or deposited with Borrower pursuant to the Mortgaged Documents upon the occurrence of a Casualty or Condemnation) to the payment of the Debt in such order, proportion and priority as Lender may determine in its sole and absolute discretion. Lender’s right to withdraw and apply such Net Proceeds (together with any and all other amounts required to be delivered to or deposited with Borrower pursuant to the Mortgage Loan Documents upon the occurrence of a Casualty or Condemnation) shall be in addition to all other rights and remedies provided to Lender under the Loan Documents.
Application of Net Proceeds. The Company will apply the net proceeds from the offering received by it in a manner consistent with the application described under the caption "Use of Proceeds" in the Prospectus. The Company hereby agrees that, except as so described, the Company will not apply any net proceeds from the offering to pay (i) any debt for borrowed funds, or (ii) any debt or obligation owed to any Insider.
Application of Net Proceeds. The Company will apply the net proceeds from the Offering and Private Placement received by it in a manner consistent with the application described under the caption “Use Of Proceeds” in the Registration Statement, the Sales Preliminary Prospectus and the Prospectus.