Agreements with Account Debtors. After an Event of Default hereunder, no discount, credit or allowance shall be granted by Borrower to any account debtor and no return of merchandise shall be accepted by Borrower without Capital's consent. Capital may, after an Event of Default, settle or adjust disputes and claims directly with account debtors for amounts and upon terms which Capital considers advisable, and in such cases, Capital will credit Borrower's account with only the net amounts received by Capital in payment of such disputed Accounts, after deducting all Capital Expenses incurred or expended in connection therewith.
Appears in 5 contracts
Samples: Loan and Security Agreement (First Choice Healthcare Solutions, Inc.), Loan and Security Agreement (United Golf Products Inc), Loan and Security Agreement (Enetpc Inc)
