Payment of interest and principal hereunder shall be made at the business address of the holder hereof. If the payments to be made by the Company shall be stated to be due on a date which is not a business day, such payment may be made on the next succeeding business day, and the interest payment on each such date shall include the amount thereof which shall accrue during the period of such extension of time. All payments hereunder shall be applied first against expenses and indemnities, next against interest accrued on the Advances (applied in the order in which each particular Advance was made), and next in reduction of the outstanding principal balance of the Advances (applied in the order in which each particular Advance was made).