Common use of Priority of Application Clause in Contracts

Priority of Application. For a TA Signatory, the Company shall Appropriate the Collateral Amount towards the Reduction of the applicable Distribution Liabilities, based on the amount of such Collateral Amount and such applicable Distribution Liabilities as at the relevant Distribution Value Date following any Reduction effected in accordance with Clause 60.7.2, in the following order of priority: (i) first, Costs Amount; (ii) secondly, the Net Financial Liability; (iii) thirdly, Ascertained Non-Financial Contract Liabilities; and (iv) fourthly, Unfunded Retention Amount. For an NTA Signatory, the Company shall Appropriate the Collateral Amount towards the Reduction of the Net Financial Liability, based on the amount of such Collateral Amount and such Net Financial Liability as at the relevant Distribution Value Date following any Reduction effected in accordance with Clause 60.7.2.