Application of Net Sale Proceeds from Permitted Disposals Clause Samples

Application of Net Sale Proceeds from Permitted Disposals. 16.6.1 The Obligors shall procure that (i) all Net Sale Proceeds received by Obligors in respect of a FH Disposal or (ii) in the case of other directly EBITDA generating assets (other than those referred to in Clause 16.6.2 (Application of Net Sale Proceeds from Permitted Disposals)), an amount equal to 120 per cent. of the relevant Allocated Debt Amount or (iii) the Net Sale Proceeds received by Obligors in respect of the disposal of a Property that has been used in a funeral home business that has been wound up after the Closing Date, and which was not directly EBITDA generating, shall be credited to the Funeral Home Reserve Account. In the case of (ii) above, the excess of the Net Sale Proceeds over 120 per cent. of the relevant Allocated Debt Amount shall be credited to the Elective Capex Account. 16.6.2 The Obligors shall procure that all Net Sale Proceeds received by the Obligors in respect of a Crem Disposal shall be credited to the Crematorium Reserve Account. 16.6.3 On the Sweep Date in respect of any Unutilised Net Sale Proceeds an amount equal thereto will be swept to the Principal Reserve Account, but DFL may transfer any part of such Unutilised Net Sale Proceeds to the Principal Reserve Account at any earlier date prior to the Sweep Date provided that on the date of any such transfer the Restricted Payment Condition is satisfied and, provided further that such part transfer is not earmarked as collateralising an FH Reserve Account Permitted Commitment or a Crematorium Reserve Account Permitted Commitment respectively.