Common use of After Default Clause in Contracts

After Default. After the occurrence and during the continuance of an Event of Default, any payment or proceeds of Collateral shall be applied in the following order: (i) to all fees and expenses for which Agents or Lenders have not been paid or reimbursed in accordance with the Loan Documents (and if such payment is less than all unpaid or unreimbursed fees and expenses, then the payment shall be paid against unpaid and unreimbursed fees and expenses in the order of incurrence or due date); (ii) to accrued interest on the Notes on a pro rata basis, based upon the outstanding principal balances of the Notes as of the date of payment; (iii) to the principal of the Notes and amounts due and owing under any Financial Hedge on a pro rata basis, based upon the outstanding principal balances of the Notes or obligation due and owing under any Financial Hedge as of the date of payment; and (iv) to all other Obligations.