Common use of APPLICATION OF PAYMENTS DURING DEFAULT Clause in Contracts

APPLICATION OF PAYMENTS DURING DEFAULT. Any amount for requisition of title or requisition of use of any Item of Equipment referred to in this Section 8 which is payable to or retainable by Lessee shall not be paid to or retained by Lessee if at the time of such payment or retention a Default or a Lessee Event of Default shall have occurred and be continuing, but shall be held by or paid to Lessor and applied against the obligations of Lessee under this Lease, and at such time as there shall not be continuing any such Default or Lessee Event of Default, such amount shall be paid to Lessee to the extent not previously applied in accordance with this sentence.