Common use of Collection of Accounts; Segregation of Proceeds, Etc Clause in Contracts

Collection of Accounts; Segregation of Proceeds, Etc. (a) Until an Event of Default exists, or until such earlier time as the Lender shall exercise any of its rights under Section 4.3, the Grantor will, at the Grantor's sole expense, collect from the Account Debtors all amounts due on Accounts and Contracts when they shall become due; and upon any default by any Account Debtor, the Grantor shall have the authority, at the Grantor's sole expense, to repossess any goods covered by any Account or Contract in accordance with the terms thereof and applicable law and to take such other action with respect to any such Account, Contract and goods as the Grantor may deem advisable. Upon request by the Lender all remittances received by the Grantor as proceeds of Property shall be (1) held in trust for the Lender separate and apart from, and not commingled with, any property of the Grantor, (2) kept capable of identification as the property of the Lender, and (3) delivered daily (or at such other intervals as may be mutually agreed upon in writing) to the Lender in the identical form received, with appropriate endorsements, and accompanied by a report prepared by the Grantor in such form as the Lender may require. (b) Promptly upon the Lender's request, the Grantor shall: (1) give written notice of the Lender's Liens on the Accounts and Contracts to the Account Debtors in such form and at such times as the Lender may require; (2) open and maintain at the Grantor's expense a lock box with the Lender for the receipt of all remittances with respect to Property and execute a lock box agreement satisfactory to the Lender governing such lock box; and (3) notify the Account Debtors to make payments on the Accounts and Contracts directly to the Lender or to said lock box. All items received by the Lender shall be, at the option of the Lender, credited to the Obligations in accordance with Section 5.9, or held until finally collected in a Collateral Reserve Account established under Section 4.8.

Collection of Accounts; Segregation of Proceeds, Etc. (a) Until The Borrower covenants and agrees that until the occurrence of an Event of Default existshereunder, or until such earlier time as the Lender shall exercise any of its rights to the contrary under this Section 4.32.02 or Section 2.03 hereof, the Grantor Borrower will, at the GrantorBorrower's sole expense, collect from the Purchaser on each Account Debtors all amounts due on Accounts thereon as and Contracts when they the same shall become due; , and upon in the event of any default by any Account DebtorPurchaser justifying such action, the Grantor Borrower shall have the authority, at the GrantorBorrower's sole expense, to repossess any goods merchandise covered by any such Account or Contract in accordance with the terms thereof and any applicable law and to take such other action with respect to any such Account, Contract and goods Account or the merchandise covered thereby as the Grantor Borrower, in the absence of instructions from the Lender, may deem advisable. Upon request demand by the Lender Lender, all remittances checks and other forms of remittance received by the Grantor Borrower as proceeds of Property Collateral shall be (1a) held in trust for the Lender separate and apart from, from and not commingled with, with any property of the GrantorBorrower, (2b) kept capable of identification as the property of the Lender, and (3) if delivered not less often than daily (or at such other intervals as may be mutually agreed upon in writing) to the Lender in the identical form received, with appropriate endorsements, and accompanied by a report prepared by the Grantor Borrower in such form as the Lender may shall require. (b) . Promptly upon the Lender's request, demand. the Grantor shallBorrower shall do any or all of the following: (1a) give written notice of the Lender's Liens on security interest in the Accounts and Contracts to the Account Debtors Purchasers in such form and at such times as the Lender may require; : (2b) open and maintain at the GrantorBorrower's expense a lock box with the Lender for the receipt of all remittances with respect to Property Collateral and execute a lock box an agreement with the Lender in form and substance satisfactory to the Lender governing such lock box; and : and/or (3c) notify the Account Debtors Purchasers to make payments on the Accounts and Contracts directly to the Lender or to said lock box. All such items received by the Lender shall be, at the option of the Lender, credited to the Obligations Liabilities in accordance with Section 5.9, such order and in such proportions as the Lender may deem advisable or deposited and held until finally collected in a Collateral Reserve Account collateral reserve account established under Section 4.8with the Lender. Funds in the collateral reserve account shall not be subject to withdrawal by the Borrower, but at all times shall be subject to the control of the Lender, and may be applied against the Liabilities from time to time at the sole discretion of the Lender.

Collection of Accounts; Segregation of Proceeds, Etc. (a) Until the occurrence of an Event of Default existshereunder, or until such earlier time as the Lender shall exercise any of its rights under Section 4.34.03, the Grantor Borrower will, at the GrantorBorrower's sole expense, collect from the Purchaser on each Account Debtors all amounts due on Accounts thereon as and Contracts when they the same shall become due; and upon in the event of any default by any Account DebtorPurchaser justifying such action, the Grantor shall Borrower will have the authority, at the GrantorBorrower's sole expense, to repossess any goods merchandise covered by any such Account or Contract in accordance with the terms thereof and any applicable law and to take such other action with respect to any such Account, Contract and goods Account or the merchandise covered thereby as the Grantor Borrower, in the absence of instructions from the Lender, may deem advisable. (b) Commencing the date hereof, the Borrower shall at all times until this Agreement is terminated as set forth in Section 8.09, open and maintain at the Borrower's expense a lock box with the Lender for the receipt of all remittances with respect to Property. The Borrower shall execute an agreement with the Lender in form and substance satisfactory to the Lender governing such lock box and shall notify the Purchasers to make payments on the Accounts directly to said lock box. Commencing the date hereof, the Borrower shall turn over all items that are received from Purchasers in payment of Accounts (but that are not paid to the lock box once the lock box is established) directly to the Lender for deposit to a depository ZBA account (the "Depository ZBA"). All amounts received by the Lender from the lock box shall also be deposited to the Depository ZBA. All deposits made to the Depository ZBA will be transferred daily to the Commercial Finance Clearing Account, which is an account in the name of the Lender's Commercial Finance Department used to clear the funds collected. Funds will be held in that account for two Business Days. After the two-day period elapses, such funds shall be credited by the Lender to the Obligations in accordance with Section 5.10. The flow of funds resulting from the collection of Accounts shall be governed by the Lender's rules and regulations from time to time in effect for cash management accounts of this type. Upon request by the Lender Lender, all remittances checks and other forms of remittance received by the Grantor Borrower as proceeds of Property shall be (1a) held in trust for the Lender separate and apart from, from and not commingled with, with any property of the GrantorBorrower, (2b) kept capable of identification as the property of the Lender, and (3c) delivered not less often than daily (or at such other intervals as may be mutually agreed upon in writing) to the Lender in the identical form received, with appropriate endorsements, and accompanied by a report prepared by the Grantor Borrower in such form as the Lender may shall require. (b) Promptly upon the Lender's request, the Grantor shall: (1) give written notice of the Lender's Liens on the Accounts and Contracts to the Account Debtors in such form and at such times as the Lender may require; (2) open and maintain at the Grantor's expense a lock box with the Lender for the receipt of all remittances with respect to Property and execute a lock box agreement satisfactory to the Lender governing such lock box; and (3) notify the Account Debtors to make payments on the Accounts and Contracts directly to the Lender or to said lock box. All items received by the Lender shall be, at the option of the Lender, credited to the Obligations in accordance with Section 5.9, or held until finally collected in a Collateral Reserve Account established under Section 4.8.

Collection of Accounts; Segregation of Proceeds, Etc. (a) Until an Event of Default existsBorrower covenants and agrees that, or until such earlier time as except to the Lender shall extent that Agent’s exercise any of its rights and remedies hereunder or under Section 4.3any other Loan Document shall prevent Borrower from doing so, the Grantor Borrower will, at the Grantor's Borrower’s sole expense, collect from the Purchaser on each Account Debtors all amounts due on Accounts thereon as and Contracts when they the same shall become due; and upon in the event of any default by any Account DebtorPurchaser justifying such action, the Grantor Borrower shall have the authority, at the Grantor's Borrower’s sole expense, to repossess any goods merchandise covered by any such Account or Contract in accordance with the terms thereof and any applicable law Law and to take such other action with respect to any such AccountAccount or the merchandise covered thereby as Borrower, Contract and goods as in the Grantor absence of instructions from Agent, may deem advisable. Upon request Collection Methods. Borrower agrees that no court action or other legal proceedings for garnishment, attachment, repossession of property, detinue, or any attempt to repossess any merchandise covered by the Lender all remittances received by the Grantor as proceeds of Property any Account other than through legal proceedings, shall be (1) held in trust for done or attempted to be done by Borrower except by or under the Lender separate direction of competent legal counsel. Borrower agrees to indemnify and apart fromhold Agent harmless from any loss or liability of any kind or character which may be asserted or sought to be asserted against Agent by virtue of any suit filed, and not commingled with, process issued or any property of the Grantor, (2) kept capable of identification as the property of the Lender, and (3) delivered daily (repossession or attempted repossession done or attempted by Borrower or at such other intervals as Borrower’s direction or any endeavors that Borrower may be mutually agreed upon in writing) make to the Lender in the identical form received, with appropriate endorsements, and accompanied collect or enforce any Accounts or repossess any goods covered by a report prepared by the Grantor in such form as the Lender may requireany Account. (b) Promptly upon the Lender's request, the Grantor shall: (1) give written notice of the Lender's Liens on the Accounts and Contracts to the Account Debtors in such form and at such times as the Lender may require; (2) open and maintain at the Grantor's expense a lock box with the Lender for the receipt of all remittances with respect to Property and execute a lock box agreement satisfactory to the Lender governing such lock box; and (3) notify the Account Debtors to make payments on the Accounts and Contracts directly to the Lender or to said lock box. All items received by the Lender shall be, at the option of the Lender, credited to the Obligations in accordance with Section 5.9, or held until finally collected in a Collateral Reserve Account established under Section 4.8.