Repayment Proceeds Sample Clauses

The 'Repayment Proceeds' clause defines how funds received from the repayment of a loan or other financial obligation are to be handled. Typically, this clause specifies the order in which proceeds are distributed, such as first covering outstanding principal, then interest, and finally any fees or penalties. It may also outline the parties entitled to receive these funds and the timing of such distributions. The core function of this clause is to ensure transparency and fairness in the allocation of repayment funds, thereby reducing disputes and clarifying expectations among all parties involved.