Amounts Owed to Other Interest Owners Sample Clauses

Amounts Owed to Other Interest Owners. Taxes. Notwithstanding anything to the contrary in this Section 2.9, any amounts deposited into the Project Account owing to (i) third party Working Interest and Royalty Interest holders and (ii) Governmental Authorities for taxes or payments measured by production will be released by Lender to Borrowers upon receipt of a certificate from a Borrower detailing the amounts and the party to be paid so that such Borrower may return Chose amounts to the third party Working Interest and Royalty Interest holders and Governmental Authorities (throughout this paragraph, all such interest holders and Governmental Authorities are, collectively, the “Recipient Parties”); provided, however, Lender will, at its option, have the right, but not the Obligation, to make payments directly to the Recipient Parties upon the occurrence and during the continuation of an Event of Default; and provided, further, if Lender elects not to make these payments directly, Lender shall release sufficient funds to allow such Borrower to make the payments described in this Section 2.9(c) to the Recipient Parties, Except as provided in the preceding sentence, Lender may, upon the occurrence and during the continuation of an Event of Default, apply all of each Borrowers funds in the Borrowers Sub-Account against all due and unpaid Obligations. Lender will have the right to undertake audit procedures during normal business hours and upon prior notice to periodically confirm that the payments described in this Section 2.9(c) have been made by each Borrower.