Common use of Payment Upon Default Clause in Contracts

Payment Upon Default. The Borrower hereby authorizes and empowers the Lender, without further order, notice, or direction from or to the Borrower upon the occurrence of any Event of Default pursuant to the Loan Agreement, to apply all or any part of the Debt Service Reserve Funds (including any interest which has accrued thereon and has not yet been disbursed to Borrower) in full or partial payment of the Loan Obligations, whether or not then due, in such order, manner, and extent as the Lender may elect. Should Lender elect to withdraw any declaration of an Event of Default, then upon request of the Lender, Borrower will replenish any funds applied by Lender to the Loan Obligations from the