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Common use of Application of Earnings Clause in Contracts

Application of Earnings. Until an Event of Default or a Potential Event of Default occurs, the Lender shall on each Repayment Date and on each due date for the payment of interest under this Agreement apply (and the Borrowers hereby irrevocably authorise the Lender to apply) so much of the balance on the Accounts as equals: (a) the repayment instalment due on that Repayment Date; or (b) the amount of interest payable on that interest payment date, in each case in discharge of the Borrowers’ liability for that repayment instalment or that interest.

Appears in 2 contracts

Samples: Loan Agreement (DryShips Inc.), Loan Agreement (DryShips Inc.)

Application of Earnings. Until an Event of Default or a Potential Event of Default occurs, the Lender shall on each Repayment Date and on each due date for the payment of interest under this Agreement apply (and the Borrowers hereby irrevocably authorise the Lender to apply) so much of the balance on the Earnings Accounts as equals: (a) the repayment instalment due on that Repayment Date; or (b) the amount of interest payable on that interest payment date, in each case in discharge of the Borrowers’ liability for that repayment instalment or that interest.

Appears in 1 contract

Samples: Amending and Restating Agreement (DryShips Inc.)

Application of Earnings. Until an Event of Default or a Potential Event of Default occurs, the Lender shall on each Repayment Date and on each due date for the payment of interest under this Agreement apply (and the Borrowers Borrower hereby irrevocably authorise authorises the Lender to apply) so much of the balance on the Earnings Accounts as equals: (a) the repayment instalment due on that Repayment Date; or (b) the amount of interest payable on that interest payment date, in each case in discharge of the Borrowers’ Borrower’s liability for that repayment instalment or that interest.

Appears in 1 contract

Samples: Loan Agreement (DryShips Inc.)