Order of Application by the Bank. (1) In the event that payments made by the Obligor, set-offs or withdrawals and application made by the Bank as provided for in Article 10, are insufficient to satisfy all of the Obligor’s obligations, the Bank shall apply such payments and/or such set-offs or withdrawals and application to the satisfaction in the following order of (i) any expenses, (ii) default interest, and (iii) the interest and the principal of the Obligor’s obligation; provided however, the Bank may change the order of application unless such change is adverse to the Obligor’s interest.
Order of Application by the Bank. ① In the event that payments made by the Obligor or set-offs or withdrawals and application made by the Bank as provided for in Article 10 are insufficient to satisfy all of the Obligor‟s obligations, the Bank shall apply such payments and/or such set-offs or withdrawals to the satisfaction of first, the expenses, second, the interest and third, the principal of the Obligor‟s obligation, in such order as applicable; provided, however, the Bank may change the order of application unless such change is adverse to the Obligor‟s interest. ② In the event that the Obligor‟s obligations are not set-off or paid in full, the amount collected through compulsory execution or auction to exercise security rights shall come under other provisions of the Civil Law. ③ In the event that any repayments or deposits not related to the preceding Paragraph 2 are not enough to fully cover all obligations of the Obligor, payments or set-offs shall be applied in the order set by the Obligor. In this case, the Bank may immediately raise objections for possible concerns on preservation of claims and change applicable obligations for payments or set-offs by considering secured mortgage, guarantee, importance, difficulty in disposal, length of payment period, and potential settlement of bills discounted.
