Common use of Application of Collateral and Proceeds Clause in Contracts

Application of Collateral and Proceeds. The proceeds of any sale of, or other realization upon, all or any part of the Collateral will be applied in the following order of priorities: (i) first, to pay the expenses of such sale or other realization, including those reasonable expenses, liabilities and advances actually incurred or made by Collateral Agent and its agent and counsel in connection therewith, and any other unreimbursed expenses of which Collateral Agent is to be reimbursed pursuant to Section 9 as determined in its sole discretion; (ii) second, to the payment of the obligations in such other manner as Collateral Agent, in its sole discretion, will determine; and (iii) finally, to pay to Debtor, or its successors or assigns, or to a court of competent jurisdiction, or as directed by a court of competent jurisdiction, any surplus then remaining from such proceeds.

Application of Collateral and Proceeds. The If an Event of Default will have occurred and be continuing, the proceeds of any sale of, or other realization upon, all or any part of the Collateral will be applied in the following order of priorities: (i) first, to pay the expenses of such sale or other realization, including those reasonable expenses, liabilities and advances actually incurred or made by Collateral Agent and its agent and counsel in connection therewith, and any other unreimbursed expenses of which Collateral Agent is to be reimbursed pursuant to Section 9 as determined in its sole discretion; (ii) second, to the payment of the obligations in such other manner as Collateral Agent, in its sole discretion, will determine; and (iii) finally, to pay to Debtor, or its successors or assigns, or to a court of competent jurisdiction, or as directed by a court of competent jurisdiction, any surplus then remaining from such proceeds.