Common use of When Distributions Must Be Paid Over Clause in Contracts

When Distributions Must Be Paid Over. In the event that the Subordinated Holder Representative or any Subordinated Holder receives any payment of any Subordinated Indebtedness at a time when such payment is prohibited by this Agreement or is to be paid to the Senior Agent or any Senior First Priority Secured Party, such payment shall be held by the Subordinated Holder Representative or such Subordinated Holder, in trust for the benefit of, and shall be paid forthwith over and delivered (together with any necessary endorsements) to, the Senior First Priority Secured Parties (or the Senior Agent), as their respective interests may appear, for application to the payment of the Senior Indebtedness. If any Subordinated Holder or the Subordinated Holder Representative shall fail to make any such endorsement, then each such Person hereby irrevocably authorizes and grants a power of attorney (which is irrevocable and coupled with an interest) to the Senior Agent to make such endorsement.