Collection of Accounts Receivable; Management of Collateral. (a) Within 30 days after the Effective Date, each Loan Party shall assist the Administrative Agent in (i) establishing, and, during the term of this Agreement, maintaining cash management services of a type and on terms satisfactory to the Administrative Agent at one or more of the banks set forth on Schedule 7.01 or such other banks selected by the Loan Parties and acceptable to the Administrative Agent in its sole discretion exercised reasonably (each a "Cash Management Bank"), and shall irrevocably instruct their Account Debtors, with respect to Accounts Receivable of the Loan Parties, to forward payment of the amounts owed by them directly to such Cash Management Bank, and (ii) establishing and maintaining a bank account in the Administrative Agent's name, of if the Administrative Agent otherwise agrees, in such Loan Party's name (a "Cash Management Account") at one of the Cash Management Banks. Each Cash Management Bank shall establish and maintain Cash Management Agreements with the Collateral Agent and the applicable Loan Parties, in form and substance acceptable to the Collateral Agent and each Cash Management Account shall be a cash collateral account subject to a control agreement, in form and substance satisfactory to the Administrative Agent, executed and delivered by the applicable Loan Party, the Administrative Agent, and the applicable Cash Management Bank. Until the Administrative Agent has advised the Loan Parties to the contrary after the occurrence and during the continuance of an Event of Default, the Loan Parties may and will enforce, collect and receive all amounts owing on the Accounts Receivable of the Loan Parties for the Administrative Agent's benefit and on the Administrative Agent's behalf, but at the Loan Parties' expense; such privilege shall terminate, at the election of any Agent, upon the occurrence and during the continuance of an Event of Default. All checks, drafts, notes, money orders, acceptances, cash and other evidences of Indebtedness received directly by the Loan Parties from any of their Account Debtors, as proceeds from Accounts Receivable of the Loan Parties, or as proceeds of any other Collateral, shall be held by the Loan Parties in trust for the Agents and the Lenders and upon receipt be deposited by the Loan Parties in original form and no later than the next Business Day after receipt thereof into a Cash Management Account. The Loan Parties shall not commingle such collections with the Loan Parties' own fun...
Collection of Accounts Receivable; Management of Collateral. (a) The Loan Parties shall (i) establish and maintain cash management services of a type and on terms reasonably satisfactory to the Agents (it being understood that the cash management services in effect on the Effective Date are satisfactory to the Agents) at one or more of the banks set forth on Schedule 8.01 (each a “Cash Management Bank”) and (ii) deposit or cause to be deposited promptly, and in any event no later than the next Business Day after the date of receipt thereof, all proceeds in respect of any Collateral, all Collections (of a nature susceptible to a deposit in a bank account), and all other amounts received by any Loan Party (including payments made by Account Debtors directly to any Loan Party and remittances on credit card sales) into a Cash Management Account.
Collection of Accounts Receivable; Management of Collateral. (a) The Loan Parties shall (i) establish and maintain cash management services of a type and on terms reasonably satisfactory to the Agents at one or more of the banks set forth on Schedule 8.01 (each a "Cash Management Bank") and (ii) except as otherwise provided under Section 8.01(b), deposit or cause to be deposited promptly, and in any event no later than the next Business Day after the date of receipt thereof, all proceeds in respect of any Collateral, all Collections (of a nature susceptible to a deposit in a bank account) and all other amounts received by any Loan Party into a Cash Management Account.
Collection of Accounts Receivable; Management of Collateral. (a) The Loan Parties shall establish and maintain cash management services of a type and on terms reasonably satisfactory to the Agents (it being understood that the cash management services in effect on the Effective Date are satisfactory to the Agents) at one or more of the banks or their affiliates set forth on Schedule 8.01 (each a “Cash Management Bank”).
Collection of Accounts Receivable; Management of Collateral. (a) The sixth, seventh and eighth sentences of Section 8.01(a) of the Financing Agreement are hereby amended and restated in their entirety to read as follows: “Until the Funding Agent shall advise the Loan Parties to the contrary after the occurrence and during the continuance of an Event of Default, the Loan Parties may and will enforce, collect and receive all amounts owing on the Accounts Receivable of the Loan Parties for and on the Funding Agent’s benefit and behalf, but at the Loan Parties’ expense, and such privilege shall terminate, at the election of any Agent, upon the occurrence and during the continuance of an Event of Default. So long as Availability is not greater than $20,000,000, the Funding Agent shall have the right to direct all funds received in the Collection Accounts to be sent by wire transfer or Automated Clearing House, Inc. payment to the Funding Agent’s Account for application at the end of each Business Day to reduce the then principal balance of the Revolving Loans, conditional upon final payment to the Funding Agent.”
Collection of Accounts Receivable; Management of Collateral. From and after the Closing Date:
Collection of Accounts Receivable; Management of Collateral. (a) After the occurrence and during the continuance of an Event of Default, the Collateral Agent may send a notice of assignment and/or notice of the Lenders’ security interest to any and all Account Debtors or third parties holding or otherwise concerned with any of the Collateral, which notice shall comply with any applicable legal requirements, and thereafter the Collateral Agent shall have the sole right to collect the Accounts Receivable and/or take possession of the Collateral and the books and records relating thereto, upon compliance with mandatory legal procedures, if required under the applicable laws. The Loan Parties shall not, without prior written consent of the Collateral Agent, grant any extension of time of payment of any Account Receivable, compromise or settle any Account Receivable for less than the full amount thereof, release, in whole or in part, any Person or property liable for the payment thereof, or allow any credit or discount whatsoever thereon, except, in the absence of a continuing Event of Default, as permitted by Section 7.02(a).
Collection of Accounts Receivable; Management of Collateral. (a) Until Bank has advised a Borrower to the contrary in writing after the occurrence and during the continuance of an Event of Default, a Borrower may and will enforce, collect and receive all amounts owing on the Accounts Receivable of such Borrower for Bank’s benefit and on Bank’s behalf, but at such Borrower’s expense; such privilege shall terminate, to the maximum extent permitted by law, at the election of Bank, upon the occurrence and during the continuance of an Event of Default and written notice to a Borrower of such termination.
Collection of Accounts Receivable; Management of Collateral. After the occurrence and during the continuance of an Event of Default, the Collateral Agent may send a notice of assignment and/or notice of the Lenders’ security interest to any and all Account Debtors or third parties holding or otherwise concerned with any of the Collateral, and thereafter the Collateral Agent shall have the sole right to collect the Accounts Receivable and/or take possession of the Collateral and the books and records relating thereto. Neither the Borrower nor any Guarantor shall, without prior written consent of the Collateral Agent, grant any extension of time of payment of any Account Receivable, compromise or settle any Account Receivable for less than the full amount thereof, release, in whole or in part, any Person or property liable for the payment thereof, or allow any credit or discount whatsoever thereon, except in the ordinary course of its business.
Collection of Accounts Receivable; Management of Collateral. (a) After the occurrence and during the continuance of an Event of Default, the Collateral Agent or its designee may, and at the request of the Requisite Lenders, the Collateral Agent shall, send a notice of assignment and/or notice of the Collateral Agent’s security interest to any and all Account Debtors or third parties holding or otherwise concerned with any of the Collateral, and thereafter the Collateral Agent or its designee shall have the sole right to collect the Accounts Receivable and/or take possession of the Collateral and the books and records relating thereto.
