Common use of Applications of Payments Clause in Contracts

Applications of Payments. Payments received by Holder pursuant to the terms hereof shall be applied first to the payment of all interest accrued to the date of such payment and second to the payment of principal. Notwithstanding anything to the contrary contained herein, after the occurrence and during the continuation of an Event of Default (as hereinafter defined), all amounts received by Holder from any party shall be applied in such order as Holder, in its sole discretion, may elect.