Common use of Application of Monies Clause in Contracts

Application of Monies. The proceeds of any sale of, or other realization upon, all or any part of the Collateral shall be applied by the Agent in the following order of priority: first, to payment of the expenses of such sale or other realization, including reasonable compensation to the Agent and its agents and counsel, and all expenses, liabilities and advances incurred or made by the Agent, its agents and counsel in connection therewith or in connection with the care, safekeeping or otherwise of any or all of the Collateral; second, to payment of the Obligations, in such order as the Agent may elect; and third, any surplus then remaining shall be paid to the Debtor, or its successors or assigns, or to whomsoever may be lawfully entitled to receive the same (including pursuant to Section 9-504(1)(C) of the UCC) or as a court of competent jurisdiction may direct.