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 In either case you need some provisions to guide whoever is wielding the chainsaw on how to divvy up the SPV’s resources one they have been terminated with extreme prejudice. This is the [[application of proceeds]] clause.
+===[[Payments waterfall]]===
+The order in which the proceeds must be applied is usually set out as a list of secured creditors, in order. You pay the guy at the top, then — if anything is left — the next guy, and so on. In one of those witty visual metaphors of which lawyers are so fond, this is called a “payments waterfall”.
+There are a lot of secured parties, but most of them (the trustee and the agents) aren’t likely to be owed very much, and in the time-honoured tradition of all agency arrangements, these guys get paid first. The real action is generally between the hedge counterparty and the noteholders, especially where there is a counterparty “[[flip clause]]”. In any case there is a whole lot more at the [[payments waterfall]] page.
 ===Pre-enforcement and post-enforcement===
-It is usually set out as a list of secured creditors, in order. You pay the guy at the top, then if anything is left over, you go to the next one and so on. They call it a “security waterfall”.
+As well as the “[[flip clause]]” it is time-honoured to set out ''two'' [[payments waterfall]]s: pre-enforcement and post-enforcement. These will both usually be set out in full, in the grandiloquent prose of the capital markets, even though the practical difference between them is — well, ''nil'', as you are invited to see for yourself with this {{diff|78860|78859}} of the terms in the inimitable [https://www.spiresa.com/media/1051/01-spire-2023_base-prospectus_final.pdf SPIRE programme] (don’t click on that link, honestly, it doesn’t matter how bored you are you are not that bored).