Common use of Collection of Proceeds Clause in Contracts

Collection of Proceeds. 3.1 Upon the occurrence of an Event of Default (as defined in the Credit Agreement), Debtor will (i) collect and enforce payment of all accounts receivable; (ii) hold in trust for Lender all payments received on accounts receivable as well as all rights by way of suretyship or guaranty which Debtor now has or may hereafter acquire to enforce payment of accounts receivable, and all rights in the nature of a security interest whereby Debtor may satisfy any account receivable out of property; and (iii) endorse to Lender and forthwith deliver to it all such payments in the form received by Debtor without commingling with any funds belonging to Debtor and all property in Debtor's possession or hereafter coming into its possession through enforcement of any such rights, Debtor authorizes Lender or any employee or agent thereof to endorse the name of Debtor upon any checks or other items which are received in payment of any account receivable or for any inventory, and to do any and all things necessary in order to reduce the same to money.

Collection of Proceeds. 3.1 Upon the occurrence of an Event of Default (as defined in the Credit Agreement), Debtor will (i) collect and enforce payment of all accounts receivable; (ii) hold in trust for Lender all payments received on accounts receivable as well as all rights by way of suretyship or guaranty which Debtor now has or may hereafter acquire to enforce payment of accounts receivable, and all rights in the nature of a security interest whereby Debtor may satisfy any account receivable out of property; and (iii) endorse to Lender and forthwith deliver to it all such payments in the form received by Debtor without commingling with any funds belonging to Debtor and all property in Debtor's possession or hereafter coming into its possession through enforcement of any such rights, . Debtor authorizes Lender or any employee or agent thereof to endorse the name of Debtor upon any checks or other items which are received in payment of any account receivable or for any inventoryreceivable, and to do any and all things necessary in order to reduce the same to money.