Common use of Application of Payments Not Relating to an Event of Loss Clause in Contracts

Application of Payments Not Relating to an Event of Loss. Subject to Section 20(d), any payments (including, without limitation, insurance proceeds) received at any time by Lessor or Lessee from any Governmental Entity, insurer or other Person with respect to any loss or damage to any Item or Items of Equipment not constituting an Event of Loss, will be applied directly in payment of repairs or for replacement of property in accordance with the provisions of Sections 11 and 12, if not already paid by Lessee, or if already paid by Lessee and no Lease Event of Default shall have occurred and be continuing, shall be applied to reimburse Lessee for such payment, and any balance remaining after compliance with the provisions of said Sections with respect to such loss or damage shall be retained by Lessee. If any Lease Event of Default shall have occurred and be continuing, all payments hereunder shall be paid to and retained by Lessor as security for Lessee's obligations under the Operative Documents until such time as no Lease Event of Default is continuing.