Accounts Collections Clause Samples
The "Accounts; Collections" clause defines the rights and responsibilities related to the management and collection of accounts receivable under an agreement. Typically, it outlines how payments owed to a party are to be handled, including the process for collecting outstanding amounts and the allocation of collected funds. For example, it may specify whether the seller or buyer is responsible for pursuing unpaid invoices or how collected amounts are to be distributed among parties. The core function of this clause is to ensure clarity and efficiency in the handling of receivables, reducing disputes and facilitating smooth financial operations between the parties.
Accounts Collections. Maintain the Borrower’s and its Domestic Subsidiaries’ primary depository and operating accounts and securities accounts with SVB or one or more of SVB’s Affiliates, which accounts shall represent at least 75% of the dollar value of the Borrower’s and such Domestic Subsidiaries’ accounts at all financial institutions; provided, however, cash collateral provided by the Borrower to secure any letter of credit issued by an institution other than the Issuing Bank shall not be included when calculating the dollar value of the Borrower’s and its Domestic Subsidiaries’ accounts at all financial institutions for purposes of calculating the foregoing requirement, provided that such cash collateral provided to an institution other than the Issuing Bank is deposited with SVB or one or more of SVB’s Affiliates immediately upon the release of such cash collateral upon the reduction or termination of the letter of credit secured by such cash collateral. All of the Loan Parties’ depository, operating and securities accounts shall be and remain subject to an account control agreement in form and substance reasonably satisfactory to the Administrative Agent (each, a “Control Agreement”) duly executed on behalf of the applicable financial institution. Notwithstanding the foregoing, the Borrower may maintain (i) two accounts at JPMorgan Chase Bank, N.A., that are not subject to a Control Agreement provided that the aggregate amount on deposit in such accounts does exceed $1,000,000 at any time, (ii) account # 8247942548 maintained by the Borrower at TD Bank, N.A., securing the TD Letters of Credit provided that the amount on deposit in such account shall not exceed $15,000,000 and provided further that upon the termination or non-renewal of the TD Letters of Credit the Borrower shall close such account and all amounts on deposit therein shall be promptly deposited by the Loan Parties in an account subject to a Control Agreement in favor of the Administrative Agent and (iii) accounts containing cash collateral of the Loan Parties that is pledged by the Loan Parties to secure letters of credit for the benefit of the Borrower issued by an institution other than the Issuing Bank, provided that the terms of any such letter of credit, the institution issuing such letter of credit, and the amount and the terms relating to the cash collateral securing such letter of credit are approved in writing by the Administrative Agent and provided further that upon the termination or non-renew...
Accounts Collections. (a) Maintain the Borrower’s and its Domestic Subsidiaries’ primary depository and operating accounts and securities accounts with one or more of the Lenders or one or more of the Lenders’ Affiliates, which accounts shall represent at least 75% of the dollar value of the Borrower’s and such Domestic Subsidiaries’ accounts at all financial institutions. All of the Loan Parties’ depository, operating and securities accounts shall be and remain subject to an account control agreement in form and substance reasonably satisfactory to the Administrative Agent (each, a “Control Agreement”) duly executed on behalf of the applicable financial institution. Notwithstanding the foregoing, the Borrower may maintain two accounts at JPMorgan Chase Bank, N.A., that are not subject to a Control Agreement provided that the aggregate amount on deposit in such accounts does exceed $300,000 at any time.
(b) Deposit on a daily basis directly into an account with a Lender or one or more of the Lenders’ Affiliates (which account, if maintained with an Affiliate of a Lender, shall be subject to a Control Agreement) (or cause the ACH or wire transfer of) all of the Borrower’s cash receipts and collections, including, without limitation, (i) all collections from Account Debtors of the Borrower, (ii) all of the Borrower’s available cash receipts from the sale of Inventory and other assets, and (iii) all cash payments received from any Person or from any source or on account of any sale or other transaction or event.
(c) No Group Member or Immaterial Subsidiary shall maintain any depository account, operating account, securities account or other bank or investment account outside of the United States; provided, that the Excluded Foreign Subsidiaries may maintain depository accounts, operating accounts, securities accounts or other bank or investment accounts outside the United States provided that the aggregate value of all assets in all such accounts shall at no time exceed $10,000,000.
Accounts Collections. No Credit Party shall pledge, transfer or convey, or permit the pledge, transfer or conveyance of, any security interest in any Account to any Person (other than to the Administrative Agent as provided herein). If any Credit Party receives any Collections, such Credit Party will remit such Collections to the Collection Account within [***] of its receipt thereof.
Accounts Collections