Common use of Application of insufficient funds Clause in Contracts

Application of insufficient funds. If at any time insufficient funds are received by and available to Administrative Agent to pay fully all amounts of principal, interest and fees then due and payable hereunder, subject to any written agreement among Administrative Agent and Lenders, such funds shall be applied: (i) first, to amounts then due and payable to Administrative Agent, (ii) second, to amounts then due and payable to the Senior First Lien Lenders, (iii) third, to amounts then due and payable to the Senior Second Lien Lenders, and (iv) fourth, to amounts then due and payable to the Subordinated Lenders; and within each such priority, such funds shall be applied (x) first, towards payment of fees, indemnities and expense reimbursements then due hereunder to the parties entitled thereto; (y) second, towards payment of interest then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest then due to such parties, and (z) third, towards payment of principal then due hereunder then due, ratably among the parties entitled thereto in accordance with the amounts of principal then due to such parties.