Amounts Owed to Other Interest Owners; Taxes Sample Clauses

Amounts Owed to Other Interest Owners; Taxes. Notwithstanding anything to the contrary in this Section 2.11(b), any amounts deposited into the Project Account owing to (i) third party Working Interest and Royalty Interest holders; (ii) Governmental Authorities for taxes or payments measured by production, and (iii) amounts specified as items (a) through (e) in the definition of “Net Operating Cash Flow” will be released by the Administrative Agent to Borrower upon receipt of a certificate from Borrower detailing the amounts and the party to be paid so that Borrower may return those 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”) and pay the amounts specified as items (a) through (e) in the definition of “Net Operating Cash Flow”; provided, however, the Administrative Agent will, at its option and upon notice to Borrower, 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 the Administrative Agent elects not to make these payments directly, the Administrative Agent shall, upon the request of Borrower, release sufficient funds to allow Borrower to make the payments described in Section 2.11(b) to the Recipient Parties. Except as provided in the preceding sentence, the Administrative Agent may, upon the occurrence and during the continuation of an Event of Default, apply all of Borrower’s funds in the Borrower Sub-Account against all due and unpaid Obligations. The Administrative Agent 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 2.11(b) have been made by Borrower.