Collateral Reserve Account. In accordance with and as more fully set forth in the Security Agreement, the Borrower and each Guarantor shall: (1) establish and maintain a lockbox; and (2) upon the request of the Required Banks, establish and maintain with the Agent a Collateral Reserve Account.
Collateral Reserve Account. Within sixty (60) days after the --------------------------- Closing Date, Borrower shall establish and maintain with Lender a Collateral Reserve Account into which Borrower shall transfer and deliver all cash, checks, drafts, items and other instruments for the payment of money which it now has or may at any time hereafter receive in full or partial payment for the Inventory Collateral or otherwise as proceeds of the Accounts Receivable Collateral and, pending such transfer and delivery, Borrower shall be deemed to hold same in trust for the benefit of Lender. Borrower shall not be entitled to draw on the Collateral Reserve Account without the prior written consent of Lender; provided, however, that, at any time during which deposits exist in the ------- Collateral Reserve Account, Lender may withdraw such deposits, or any portion thereof, therefrom, for application against the Obligations in such manner as Lender, in its sole discretion, may determine. Lender may, additionally, at any time in its sole discretion, direct Account Debtors to make payments on the Accounts Receivable Collateral, or portions thereof, directly to Lender, and the Account Debtors are hereby authorized and directed to do so by Borrower upon Lender's direction, and the funds so received shall be also deposited in the Collateral Reserve Account, or, at the election of Lender, upon its receipt thereof, be applied directly to repayment of the Obligations in such order as Lender, in its sole discretion, shall determine. Notwithstanding the foregoing, however, so long as no Event of Default exists, Lender agrees to settle with Borrower as to any funds which may exist in the Collateral Reserve Account from time to time hereafter on a mutually agreeable periodic basis.
Collateral Reserve Account. The demand deposit account maintained with Bank by Borrower into which all proceeds of the Collateral shall be deposited and to which only Bank will have access. On the date hereof, the Collateral Reserve Account number with respect to the Line of Credit (domestic and/or foreign) is XXXXXXX (domestic) and N/A (foreign) and shall be deemed to include any substitute or replacement account at Bank.
Collateral Reserve Account. Upon request by the Lender, the Grantor shall cause all remittances in payment of the Accounts and Contracts to be deposited with the Lender, or such other bank or banks as the Lender may require, in an account or accounts designated as the Lender may require (collectively, the "Collateral Reserve Account"). Such deposits shall be made by the Grantor daily, and each deposit shall be accompanied by a report prepared by the Grantor in such form as the Lender shall require. The Lender may at its option also deposit to the Collateral Reserve Account any remittances made to the Lender, to the lock box referred to in Section 4.2 or otherwise received by the Lender. Funds in the Collateral Reserve Account shall not be subject to withdrawal by the Grantor, but at all times shall be subject to the exclusive dominion and control of the Lender, and may be applied against the Obligations from time to time at the sole discretion of the Lender.
Collateral Reserve Account. The demand deposit account maintained with Bank by Borrower into which all proceeds of the Collateral shall be deposited' and to which only Bank will have access. On the date hereof, the Collateral Reserve Account Number is N/A.
Collateral Reserve Account. If requested by Lender to do so on or at any time during a Margining Period, it shall establish as soon as practicable but in any event within sixty (60) days thereafter and thereafter maintain for the balance of such Margining Period with Lender, either individually or in combination with one or more other Obligors, a Collateral Reserve Account into which it shall transfer and deliver all cash, checks, drafts, items and other instruments for the payment of money which it now has or may at any time hereafter receive in full or partial payment for its Inventory Collateral or otherwise as proceeds of its Accounts Receivable Collateral and, pending such transfer and delivery, it shall be deemed to hold same in trust for the benefit of Lender. Such Obligor shall not be entitled to withdraw funds on deposit in such Collateral Reserve Account after its inception without the prior written consent of Lender; provided, however, that, at any time during which collected funds exist on deposit in such Collateral Reserve Account, Lender may withdraw such deposits, or any portion thereof, therefrom, for application against the Obligations in such manner as Lender, in its sole discretion, may determine. Notwithstanding the foregoing, however, so long as no Event of Default exists, Lender agrees to settle with each Obligor as to any funds which may exist in its Collateral Reserve Account opened by it, after the foregoing application, on a daily basis, on each Business Day.
Collateral Reserve Account. Borrower shall deposit and maintain with Lender additional cash collateral in an amount equal to $1,500,000.00 (the “Cash Collateral”) to be held by Lender as additional collateral for the Loan. The Cash Collateral may be in the form of a certificate of deposit maintained by Borrower with Lender. The Cash Collateral shall be held in a blocked account established by Lender as additional security for the payment and performance of all obligations of Borrower under the Loan Documents (the “Collateral Reserve Account”), and Borrower shall have no right of withdrawal with respect to the same, provided, however, notwithstanding the aforesaid to the contrary, so long as no Event of Default occurs, Borrower shall have the right and ability to withdraw any amount from the Collateral Reserve Account in excess of the required Cash Collateral. The Collateral Reserve Account shall be an interest-bearing account, and all interest accrued on the Cash Collateral shall be for the account of Borrower so long as no Event of Default occurs. Borrower shall be liable for the payment of all
Collateral Reserve Account. 20 4.5. TRADE STYLES............................................................................................21 4.6. LIMITED POWER OF ATTORNEY...............................................................................21 5. REPRESENTATIONS, WARRANTIES AND COVENANTS APPLICABLE TO INVENTORY COLLATERAL.................................................................................................21
Collateral Reserve Account. On or before the close of business on August 31, 2001, the Company shall establish and thereafter maintain with the Bank a Collateral Reserve Account into which the Company shall transfer and deliver all cash, checks, drafts, items and other instruments for the payment of money which it now has or may at any time hereafter receive in full or partial payment for or proceeds of inventory or accounts receivable and, pending such transfer and delivery, the Company shall be deemed to hold same in trust for the benefit of the Bank. The Company shall not be entitled to withdraw funds on deposit in the Collateral Reserve Account after its inception without the prior written consent of the Bank; provided, however, that at any time during which collected funds exist on deposit in the Collateral Reserve Account, the Bank may withdraw such deposits, or any portion thereof, therefrom, for application against the Company's obligations to the Bank in such manner as the Bank, in its sole discretion, may determine. Notwithstanding the foregoing however, so long as no default exists under the terms of the Loan Agreements, the Loan Documents and this Forbearance Agreement (other than the Declared Defaults), the Bank agrees to settle with the Company as to the amount of availability under the line of credit after the foregoing application, on a daily basis, on each business day. The Company irrevocably designates and appoints the Bank as its true and lawful attorney-in-fact to endorse for collection any checks, drafts, notes or other instruments received in payment of or on account of any collateral hereafter coming into the Bank's possession and control, whether pursuant to the Collateral Reserve Account or otherwise, but the Bank shall not be under any duty to exercise any such authority or power or in any way be responsible for the collection of any such collateral.
Collateral Reserve Account. Pursuant to clause (ii) of the fifth sentence of SECTION 3.02 of the Credit Agreement, the Borrower is hereby advised in writing by the Collateral Agent of a different arrangement selected by the Collateral Agent (as directed by the Required Lenders) in respect of the disposition of collected amounts on deposit from time to time in the Collateral Reserve Account; that is, effective as of the Amendment Date, and continuing at all times thereafter, the Administrative Agent will apply all collected amounts in the Collateral Account to Revolving Loans then outstanding and Letter of Credit Obligations in respect of In-Line Standby Letters of Credit and Commercial Letters of Credit then due and payable, pro rata among each of such Obligations based on the proportion which each bears to the total amount of all such Obligations, all in conformity with the last sentence of SECTION 3.02 and subject to the overriding provisions of SECTION 3.02 in respect of such dispositions during any time that a Default or Event of Default is in existence.
