Sequence of Application Clause Samples

Sequence of Application. All moneys received or recovered by a Receiver or by NGC under or by virtue of this Deed will be applied in the manner and sequence determined by NGC. In the absence of such determination, such moneys will be applied as follows: (a) first in payment of all expenses incurred by NGC or a Receiver in the exercise, or attempted exercise, of powers under, or otherwise in connection with, this Deed, the GPSA and the GSA; (b) secondly, in payment of the Receiver’s remuneration; (c) thirdly, in payment of any outstanding amount of the Prepayment that has not been applied as a prepayment for gas; (d) fourthly, in payment of any surplus to the persons who appear to be entitled to the same. This clause is subject to: (a) any claims ranking in priority to the security created under this Deed; (b) any mandatory provision of law (and including in the case of any Personal Property, any mandatory provisions of the PPSA). GAS PREPAYMENT AND SALE AGREEMENT 28