Application of Surplus Clause Samples
The 'Application of Surplus' clause defines how any excess funds or profits remaining after all obligations and expenses have been met are to be distributed or used. Typically, this clause outlines whether the surplus will be allocated among stakeholders, reinvested into the organization, or reserved for future needs. Its core practical function is to provide clear guidance on the handling of surplus resources, thereby preventing disputes and ensuring transparency in financial management.
Application of Surplus. To the payment of the surplus, if any, to whosoever may be lawfully entitled to receive the same.
Application of Surplus. Any surplus proceeds of the Collateral are to be applied in accordance with applicable legislation.
Application of Surplus. The Borrower hereby undertakes with the Bank that it will ensure that the entire amount of the Surplus will be paid by the Borrower and the Owners immediately upon its availability to them to repay any aged trade debt of the Borrower and the Owners in connection with the Mortgaged Ships and will provide at regular intervals and in any event upon request to the Bank evidence in all respects satisfactory to the Bank that it complies with its obligations under this clause 8.4.3.”