Common use of Application of Payments or Proceeds Clause in Contracts

Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Xxxxxx will be applied in the following order of priority (a) interest due under the Note (if any), and (b) principal due under the Note. Such payments will be applied to each Periodic Payment, if any, in the order in which it became due. Any remaining amounts will be applied first to late charges, second to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note.