Sequence of Payments Sample Clauses

The Sequence of Payments clause establishes the order in which payments are to be made under an agreement. It typically outlines a hierarchy, specifying which obligations or creditors are paid first, such as administrative expenses, principal, interest, or other claims. By clearly defining the payment order, this clause helps prevent disputes among parties and ensures that funds are distributed in a predictable and agreed-upon manner, thereby reducing the risk of conflicting claims.