Common use of Repayment sequence Clause in Contracts

Repayment sequence. 3.7.2.1 The borrower shall repay its debts hereunder in the following sequence, except as otherwise agreed upon by both parties: (1) If there are several debts due between the borrower and the lender and the repayment by the borrower is insufficient to repay all debts due, the debts repaid by the borrower’s payments and the sequence of offset shall be determined by the lender; (2) If the lender exercises the right of offset against the borrower according to law or the provisions hereof, the debts to be offset and the sequence of offset shall be determined by the lender; when the lender exercises the right of subrogation according to law, the debts repaid by the sub-obligor’s payments and the sequence of offset shall be determined by the lender. 3.7.2.2 If the repayment by the borrower is insufficient to repay the loan due and payable hereunder, the lender may choose to apply the repayment towards repayment of the principal, interest, penalty interest, compound interest or the costs and expenses of debt realization.