Application of Earnings. The Borrower undertakes with the Lenders to procure that money from time to time credited to, or for the time being standing to the credit of, an Earnings Account shall, unless and until an Event of Default or Potential Event of Default shall have occurred (whereupon the provisions of Clause 17.1 shall be and become applicable), be available for application in the following manner: (a) in or towards meeting the costs and expenses from time to time incurred by or on behalf of the relevant Owner in connection with the operation of the Ship owned by it; (b) in or towards making payments of all amounts due and payable by the Borrower under this Agreement other than the payments of principal and interest pursuant to Clauses 8.2 and 5.1; (c) in or towards making any transfers to the Retention Account in accordance with Clause 18.2; and (d) as to any surplus from time to time arising on an Earnings Account following application as aforesaid, to be paid to the relevant Owner or to whomsoever it may direct.
Appears in 3 contracts
Samples: Loan Agreement, Loan Agreement, Loan Agreement (Capital Product Partners L.P.)
Application of Earnings. The Borrower undertakes with the Lenders to procure that money from time to time credited to, or for the time being standing to the credit of, an Earnings Account shall, unless and until an Event of Default or Potential Event of Default shall have occurred (whereupon the provisions of Clause 17.1 shall be and become applicable), be available for application in the following manner:
(a) in or towards meeting the costs and expenses from time to time incurred by or on behalf of the relevant Owner in connection with the operation of the Ship owned by it;
(b) in or towards making payments of all amounts due and payable by the Borrower under this Agreement other than the payments of principal and interest pursuant to Clauses 8.2 and 5.1;
(c) in or towards making any transfers to the Retention Account in accordance with Clause 18.2; andand Index
(d) as to any surplus from time to time arising on an Earnings Account following application as aforesaid, to be paid to the relevant Owner or to whomsoever it may direct.
Appears in 1 contract