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Common use of Collections Account Clause in Contracts

Collections Account. (a) The Servicer shall maintain, in the Company's name, at a depository institution (which may be the Trustee), a lock box account (the "Collections Account"). The Collections Account shall be an Eligible Account. The Servicer shall give the Trustee and the Company at least five Business Days' written notice of any change in the location of the Collections Account and any related account identification information. (b) The Servicer agrees to direct all Obligors to remit all collections and payments directly to, or otherwise cause all payments on the Contracts to be deposited in, the Collections Account. The Servicer agrees and covenants to provide payment books to all Obligors with remittance instructions directing all payments to be remitted directly to the Collections Account and that all cash, checks, notes, drafts and other items which it otherwise receives and which are attributable to the Contracts shall be promptly deposited into the Collections Account. The Servicer shall likewise deposit in the Collections Account within two Business Days of receipt all Liquidation Proceeds and Insurance Proceeds. The Servicer shall cause to be transferred to the Operating Account, at least weekly, all funds in the Collections Account that are attributable to the Contracts.

Appears in 3 contracts

Samples: Indenture (Sovereign Credit Finance Ii Inc), Indenture (Sovereign Credit Finance Ii Inc), Indenture (Sovereign Credit Finance I Inc)

Collections Account. (a) The Servicer shall maintain, in the Company's name, at a depository institution (which may be the Trustee), a lock box account (the "Collections Account"). The Collections Account shall be an Eligible Account. The Servicer shall give the Trustee and the Company at least five Business Days' written notice of any change in the location of the Collections Account and any related account identification information. (b) The Servicer agrees to direct all Obligors to remit all collections and payments directly to, or otherwise cause all payments on the Contracts to be deposited in, the Collections Account. The Servicer agrees and covenants to provide correspondence, statements, and/or payment books to all Obligors with remittance instructions directing all payments to be remitted directly to the Collections Account and that all cash, checks, notes, drafts and other items which it otherwise receives and which are attributable to the Contracts shall be promptly deposited into the Collections Account. The Servicer shall likewise deposit in the Collections Account within two Business Days of receipt all Liquidation Proceeds and Insurance Proceeds. The Servicer shall cause to be transferred to the Operating Account, at least weekly, all funds in the Collections Account that are attributable to the Contracts.

Appears in 1 contract

Samples: Indenture Agreement (Sovereign Credit Finance Ii Inc)