Common use of CREDITING PAYMENTS; APPLICATION OF COLLECTIONS Clause in Contracts

CREDITING PAYMENTS; APPLICATION OF COLLECTIONS. The receipt of any payments by Banks from Borrower shall be applied provisionally to reduce the Obligations outstanding under Section 2.1, but shall not be considered a payment on account unless such payment item is a wire transfer of immediately available federal funds and is made to Banks in accordance with wiring instructions issued by Banks to Borrower or unless and until such payment is honored when presented for payment. Should any payment to Banks not be honored when presented for payment, then Borrower shall be deemed not to have made such payment, and interest shall be recalculated accordingly. Anything to the contrary contained herein notwithstanding, any payment shall be deemed received by Banks only if it is received by Agent on a Business Day on or before (i) 11:00 a.m. (Los Angeles time) for regular payments or deposits and (ii) 9:30 a.m. California time for payments or deposits covering overdrafts. If any payment is received by Agent on a non-Business Day or after the time specified on a Business Day, it shall be deemed to have been received by Agent as of the opening of business on the immediately following Business Day.

CREDITING PAYMENTS; APPLICATION OF COLLECTIONS. The receipt of any payments by Banks Bank from Borrower shall be applied provisionally to reduce the Obligations outstanding under Section 2.1; provided, but however, that any such payment shall not be considered a payment on account unless such payment item is a wire transfer of immediately available federal funds and is made to Banks Bank in accordance with wiring instructions issued by Banks Bank to Borrower or unless and until such payment is honored when presented for payment. Should any payment to Banks Bank not be honored when presented for payment, then Borrower shall be deemed not to have made such payment, and interest shall be recalculated accordingly. Anything to the contrary contained herein notwithstanding, any payment shall be deemed received by Banks Bank only if it is received by Agent into the Bank on a Business Day on or before (i) 11:00 a.m. (Los Angeles time) California time for regular payments or deposits and (ii) 9:30 a.m. California time for payments or deposits covering overdrafts. If any payment is received by Agent Bank on a non-Business Day or after the 11:00 a.m. California time specified on a Business Day, it shall be deemed to have been received by Agent Bank as of the opening of business on the immediately following Business Day.