Common use of Application of Payments; Excess Payments to Reserve Clause in Contracts

Application of Payments; Excess Payments to Reserve. Following any Event of Default and during the continuation thereof, Secured Party may receive all Payments under the Contracts and apply such Payments against any amounts due from Debtor on account of the Loans or otherwise. The amount of Payments received in excess of amounts shall be allocated by Secured Party to an interest bearing reserve account for the benefit of Debtor ("Reserve") and held for later application against amounts due from Debtor or release to Debtor as provided below.

Application of Payments; Excess Payments to Reserve. Following any Event of Default and during the continuation thereof, Secured Party may receive all Payments under the Contracts and apply such Payments against any amounts due from Debtor such Borrower on account of the Loans or otherwise. The amount of Payments received in excess of such amounts due shall be allocated by Secured Party to an interest bearing reserve account for the benefit of Debtor such Borrower ("Reserve") and held for later application against amounts due from Debtor such Borrower or release to Debtor such Borrower as provided below.