Common use of Payment of Portions Clause in Contracts

Payment of Portions. All Portion 1 Tranches drawn down hereunder shall be paid to the Builder. Tranche A drawn down hereunder shall be paid to the Borrower in reimbursement in part of the amount of the Hermes Premium paid by the Borrower to the Hermes Agent for on-payment to Hermes on issue of the Hermes Cover, Tranche B drawn down hereunder shall be applied in payment or (if insufficient) in part payment of seventy five per cent (75%) of the Hermes Insurance Premium payable on the later of the First Drawdown Date and the issue of the Hermes Cover and Tranche C drawn down hereunder shall be applied in payment or (if insufficient) in part payment of any increase in the Hermes Insurance Premium thereafter, subject to the further proviso to Clause 2.3. Subject to the further proviso to Clause 2.3, the Borrower hereby consents to the drawdown on each Pre-Delivery Interest Payment Date of such amount of Portion 3 as is required to pay eighty per cent (80%) of the Pre-Delivery Interest payable on that Pre-Delivery Interest Payment Date and to the application of such amount in payment of such interest.