Account Covenants. Except as otherwise provided in this subsection 6.8, Debtor shall continue to collect, at its own expense, all amounts due or to become due Debtor under the Accounts. In connection with such collections, Debtor may take (and, at Agent's direction, shall take) such action as Debtor or Agent may deem necessary or advisable to enforce collection of the Accounts; PROVIDED, that Agent shall have the right at any time after the occurrence and during the continuation of an Event of Default to: (a) notify the customers or obligors under any Account of the assignment of such Account to Agent, for the benefit of Agent and the Lenders, and to direct such customers or obligors to make payment of all amounts due or to become due directly to Agent; (b) enforce collection of any such Accounts; and (c) adjust, settle or compromise the amount or payment of such Accounts. After the occurrence and during the continuation of an Event of Default (i) all amounts and proceeds (including Instruments) received by Debtor with respect to the Accounts shall be received in trust for the benefit of Agent (on behalf of Lenders), shall be segregated from other funds of Debtor and shall be forthwith paid over to Agent in the same form as so received (with any necessary endorsement) pursuant to Section 7 and (ii) Debtor shall not adjust, settle or compromise the amount or payment of any Account, or release wholly or partially any customer or obligor thereof, or allow any credit or discount thereon without the prior consent of Agent.
Account Covenants. The Borrower shall promptly upon its learning thereof: (a) inform the Administrative Agent in writing of any delay in the Borrower’s performance of any of its obligations to any Account Debtor or of any assertion of any claims, offsets or counterclaims by any Account Debtor of the Borrower other than made in the ordinary course of business, either of which could have a Material Adverse Effect; (b) furnish to and inform the Administrative Agent of all adverse information relating to the financial condition of any Account Debtor of the Borrower which could have a Material Adverse Effect; and (c) notify the Administrative Agent in writing if any of Borrower’s then existing Accounts scheduled to the Administrative Agent with respect to which the Administrative Agent for the Lenders has made an advance are no longer Eligible Accounts.
Account Covenants. The Borrower shall promptly upon the Borrower’s learning thereof: (i) inform the Lender in writing of any material delay in the Borrower’s performance of any of its material obligations to any Account Debtor or of any assertion of any material claims, setoff or counterclaims by any Account Debtor; (ii) furnish to and inform the Lender of all material adverse information of which the Borrower obtains knowledge relating to the financial condition of any Person who is then an Account Debtor as to open Accounts with a face amount, in the aggregate, in excess of $1,000,000.00.
Account Covenants. Unless the Lender notifies Borrower in writing that Lender suspends any one or more of the following requirements, Borrower shall (a) promptly upon Borrower’s learning thereof, inform the Lender, in writing, of any material delay in Borrower’s performance of any of its obligations to any Account Debtor and of any assertion of any material claims, offsets or counterclaims by any Account Debtor and of any allowances, credits and/or other monies granted by Borrower to any Account Debtor outside of the ordinary course of Borrower’s business, and (b) not permit or agree to any compromise or settlement with respect to Accounts which constitute, in the aggregate, more than five percent (5%) of all Accounts then owing to Borrower.
Account Covenants. Except as otherwise provided in this subsection 5.19, such Debtor shall continue to collect, at its own expense, all amounts due or to become due such Debtor under the Accounts, except for settlements and uncollectible Accounts in the ordinary course of business. Debtor may use collection agents in this respect and may sell delinquent Accounts in the ordinary course of business. In connection with such collections, such Debtor may take (and, at the Security Trustee’s direction, shall take) such action as such Debtor may reasonably deem necessary or advisable to enforce collection of the Accounts; provided, that the Security Trustee shall have the right at any time after the occurrence and during the continuation of an Event of Default to: (a) notify the customers or obligors under any Accounts of the assignment of such Accounts to the Security Trustee and to direct such customers or obligors to make payment of all amounts due or to become due directly to the Security Trustee; (b) enforce collection of any such Accounts (to the exclusion of such Debtor, except as the Security Trustee may otherwise agree in writing); and (c) adjust, settle or compromise the amount or payment of such Accounts. After the occurrence and during the continuation of an Event of Default (i) all amounts and Proceeds (including Instruments) received by such Debtor with respect to the Accounts shall be received in trust for the benefit of the Security Trustee on behalf of the Beneficiaries, shall be segregated from other funds of such Debtor and shall be forthwith paid over to the Security Trustee in the same form as so received (with any necessary endorsement) and (ii) such Debtor shall not adjust, settle or compromise the amount or payment of any Account, or release wholly or partly any customer or obligor thereof, or allow any credit or discount thereon, other than trade discounts granted in the ordinary course of business or with respect to immaterial Accounts, in each case, without the prior consent of the Security Trustee.
Account Covenants. Each Borrower shall promptly upon learning thereof (except as to Accounts not to exceed $500,000 in the aggregate for all Borrowers at any time outstanding): (i) inform Agent in writing of any material violation of such Borrower's contractual obligations to any Account Debtor or of any assertion of any claims, offsets or counterclaims by any Account Debtor; (ii) furnish to and inform Agent of all material adverse information relating to the financial condition of any Account Debtor; and (iii) notify Agent in writing if any of its then existing Accounts scheduled to Agent with respect to which Agent or any Lender has made an advance are no longer Eligible Accounts as to which Agent and each Lender has not previously received notice from such Borrower that the same have ceased to be Eligible Accounts hereunder.
Account Covenants. (a) The Borrower may grant such allowances or other adjustments to the Borrower’s Account Debtors, Credit Card Processors and Credit Card Issuers (exclusive of extending the time for payment of any Account or Account Receivable, which shall not be done without first obtaining the Agent’s prior written consent in each instance) as the Borrower may reasonably deem to accord with sound business practice, provided, however, the authority granted the Borrower pursuant to this Section 6.3 may be limited or terminated by the Agent at any time in the Agent’s discretion following the occurrence and during the continuance of an Event of Default.
Account Covenants. (a) Each Debtor shall maintain its existing lockboxes and blocked accounts as of the Petition Date (collectively, "Blocked Accounts"), which are subject to irrevocable instructions acceptable to the Agent as hereinafter set forth, in each such Debtor's name with such banks ("Collecting Banks") as were previously approved by the Prepetition Agent pursuant to the Prepetition Loan Agreement or are acceptable to the Agent, to which all account debtors shall directly remit all payments on Accounts, in which each Debtor will immediately deposit all payments it otherwise directly receives for Inventory or other payments constituting proceeds of Collateral, in each case in the identical form in which such payment was made, whether by cash or check. With respect to any Blocked Accounts established on or after the date hereof, the Collecting Banks shall acknowledge and agree, in a manner satisfactory to the Agent, that all payments made to the Blocked Accounts are the sole and exclusive property of the Agent, for the benefit of the Benefitted Parties, and that the Collecting Banks have no right to setoff against the Blocked Accounts and that all such payments received will be promptly transferred to the Agent's account upon the request of Agent. The Debtors hereby agree, and the Financing Orders shall confirm, that all payments made to any Blocked Accounts or otherwise received by the Agent and whether on the Accounts or as proceeds of other Collateral or otherwise will be the sole and exclusive property of the Agent, for the benefit of the Benefitted Parties. If the Debtors, or any of their Affiliates, employees, agents or other Person acting for or in concert with Debtors, shall receive any monies, checks, notes, drafts or any other payments relating to and/or proceeds of Accounts or other Collateral, Debtors or such Person shall hold such instrument or funds in trust for the Agent, for the benefit of the Benefitted Parties, and, immediately upon receipt thereof, shall remit the same or cause the same to be remitted, in kind, to the Blocked Accounts or to the Agent at its address set forth in Annex I of the Credit Agreement. For the purpose of calculating interest on the Secured Obligations, all proceeds received in the Agent's account shall be credited to the Secured Obligations on the Business Day of the Agent's receipt of immediately available federal funds.
Account Covenants. With respect to Eligible Accounts, each Obligor shall promptly upon such Obligor’s learning thereof: (a) inform Bank in writing of any material delay in such Obligor’s performance of any of its obligations to any Account Debtor or of any assertion of any claims, setoff or counterclaims by any Account Debtor (provided, however, that no Obligor shall be deemed to be in breach of clause (a) hereof unless the aggregate amount of Accounts as to which such Obligor has failed to inform Bank as required above exceeds $100,000); (b) furnish to and inform Bank of all material adverse information of which such Obligor obtains knowledge relating to the financial condition of any Person who is then an Account Debtor as to open Accounts with a face amount, in the aggregate, in excess of $100,000; and (c) notify Bank in writing if any of its then existing Accounts previously scheduled to Bank with respect to which Bank has made an advance are no longer Eligible Accounts.
Account Covenants. Until the Final Liquidation Date, Retailers covenant to do the following with respect to each transaction involving an Account or the Program: (a) Retailers shall respond to, and cooperate with, Bank promptly in connection with the resolution of disputes with Cardholders; (b) Retailers shall maintain a policy for the exchange and return of Goods and adjustments for Services rendered or not rendered that is in accordance with all applicable laws and include credit for such return or adjustment in the Charge Transaction Data in accordance with the terms of this Agreement and the Operating Procedures in the event the return/exchange has been authorized in accordance with Retailers' policies; (c) Retailers shall not seek or obtain any special agreement or condition from, nor discriminate in any way against, Cardholders with respect to the terms of any transaction; (d) Retailers shall comply with all Retailers' warranties, if any, with respect to Goods and/or Services sold under an Account; and (e) Retailers shall do nothing to prevent an Account from being valid and enforceable against the Cardholder obligated for the payment and performance of such Account. SECTION 8.03
