From Principles of Project Finance
13.5 CONTROL OF CASH FLOW
Just as during the construction period of the project the lenders only allow drawings to be made and costs to be paid when they are satisfied that these are for the budgeted and approved purposes (cf. 13.3.2), similarly, during the operating period, the lenders normally control the application of the cash flow of the project by controlling the way in which the cash is used. These controls include:
an order of priorities in applying cash, known as the "cascade" (cf. 13.5.1)
requirements for the Project Company to establish reserve (or escrow) accounts (cf. 13.5.2)
control on distributions of cash to investors (cf. 13.5.3)
in some cases, cash sweep (cf. 13.5.4) or cash clawback requirements (cf. 13.5.5)
13.5.1 The Cash Flow Cascade
The controls for application of cash earned by the Project Company from its revenues are set out in a cash flow cascade (or "waterfall,") setting out the order of priorities for the use of this cash. A typical order of priorities is:
Payment of fuel or raw material and operating costs, including the O&M Contract (based on the agreed budgetary procedures cf. 8.7.3) and taxes (i.e., all the costs the Project Company needs to pay to continue operating the project).
Fees and expenses due to the agent bank, security trustee, etc.
Interest on the debt and any swap or other hedging payments 
Debt repayments (to the "target" schedule if there is one cf. 13.2.4) 1
Payments to the Debt Service Reserve Account, and other Reserve Accounts...
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