Common use of Advance Payment Contract Clause in Contracts

Advance Payment Contract. Not enter into or agree to any Advance Payment Contract with any person affecting any of the Mortgaged Property. It is expressly stipulated that as a condition of granting approval of any Advance Payment Contract Beneficiary may, in its discretion, require that any Advance Payment be paid to Beneficiary in whole or in part for application toward payment of the Obligation or may require that any portion of any Advance Payment not thus applied on the Obligation be placed in escrow with Beneficiary to insure use thereof as Beneficiary may direct or determine, or Beneficiary, in its sole discretion, may impose other conditions upon such consent or may refuse to consent to the making of such Advance Payment Contract. Whether or not Beneficiary’s consent to an Advance Payment Contract heretofore and hereafter made by Grantor has been obtained, and regardless of whether the existence or making of such Advance Payment Contract constitutes a breach of Grantor’s representations or covenants herein contained, it is expressly stipulated that unless otherwise expressly agreed in writing by Beneficiary, all Advance Payments hereafter becoming due to Grantor under any Advance Payment Contract shall be deemed proceeds of sale of Hydrocarbons from the Mortgaged Property for purposes hereof, which are assigned to and are to be paid over to Beneficiary, and Beneficiary’s receipt or acceptance of any such Advance Payment or application thereof toward payment of the Obligation shall not constitute a waiver of any default resulting from the existence of making of the Advance Payment Contract pursuant to which such Advance Payment is made or a ratification or approval by Beneficiary of such Advance Payment Contract.