Common use of Collection of Pledged Receivables Clause in Contracts

Collection of Pledged Receivables. Upon the occurrence of an Event of Default, the Collateral Agent or any other Secured Party may at any time after the occurrence of an Event of Default, by giving each Grantor written notice, elect to require that the Pledged Receivables be paid directly to the Collateral Agent for the benefit of the Secured Parties. In such event, each Grantor shall, and shall permit the Collateral Agent to, promptly notify the account debtors or obligors under the Pledged Receivables owned by such Grantor of the Collateral Agent’s interest therein and direct such account debtors or obligors to make payment of all amounts then or thereafter due under such Pledged Receivables directly to the Collateral Agent. Upon receipt of any such notice from the Collateral Agent or any other Secured Party, each Grantor shall thereafter hold in trust for the Secured Parties all amounts and proceeds received by it with respect to the Pledged Receivables and Other Collateral and immediately and at all times thereafter deliver to the Collateral Agent all such amounts and proceeds in the same form as so received, whether by cash, check, draft or otherwise, with any necessary endorsements. The Collateral Agent shall hold and apply funds so received as provided by the terms of Sections 7.3 and 7.4 hereof.

Collection of Pledged Receivables. Upon the occurrence of an Event of Default, the Collateral Agent or any other Secured Party may at any time after the occurrence of an Event of Default, by giving each Grantor written notice, elect to require that the Pledged Receivables be paid directly to the Collateral Agent for the benefit of the Secured Parties. In such event, each Grantor shall, and shall permit the Collateral Agent to, promptly notify the account debtors or obligors under the Pledged Receivables owned by such Grantor of the Collateral Agent’s interest therein and direct such account debtors or obligors to make payment of all amounts then or thereafter due under such Pledged Receivables directly to the Collateral Agent. Upon receipt of any such notice from the Collateral Agent or any other Secured Party, Alliance – Security Agreement each Grantor shall thereafter hold in trust for the Secured Parties all amounts and proceeds received by it with respect to the Pledged Receivables and Other Collateral and immediately and at all times thereafter deliver to the Collateral Agent all such amounts and proceeds in the same form as so received, whether by cash, check, draft or otherwise, with any necessary endorsements. The Collateral Agent shall hold and apply funds so received as provided by the terms of Sections 7.3 and 7.4 hereof.