Collections and Lock-Boxes Sample Clauses
The "Collections and Lock-Boxes" clause establishes procedures for how payments or receivables are to be collected and managed, often by requiring that funds owed to a party be deposited into designated accounts or lock-boxes controlled by a lender or agent. In practice, this means that all payments from customers or third parties are directed to specific accounts, which may be monitored or swept regularly to ensure prompt application of funds to outstanding obligations. This clause is primarily used to secure the lender's interest by ensuring that incoming cash flows are properly controlled and applied, thereby reducing the risk of misappropriation or delayed payments.
Collections and Lock-Boxes. (a) The Borrower and the Collection Agent will instruct all Obligors to cause all Collections to be either (i) remitted to a Lock-Box to be retrieved therefrom by the applicable Collection Account Bank for prompt deposit to the applicable Collection Account or (ii) remitted directly to a Collection Account. If the Borrower, the Transferor, the Collection Agent or any Originator receives any Collections, the Borrower or the Collection Agent will, and shall instruct such Originator to, immediately remit such Collections to the applicable Collection Account within two Business Days of receipt thereof, and the Collection Agent, the Transferor or the Borrower shall promptly take, or direct the applicable Originator to take, all such actions as are reasonably necessary in the Collection Agent’s or the Borrower’s discretion or reasonably requested by the Administrative Agent to ensure that future payments from any Obligor be made to a Collection Account or Lock-Box. If the Borrower or the Collection Agent does not, or does not cause the applicable Originator to, promptly (and in any event within two Business Days from the Administrative Agent’s request) take such actions as the Administrative Agent may reasonably request, then the Administrative Agent, its assigns or designees, may, to the maximum extent permitted by law take such actions as the Administrative Agent, its assigns or designees may, on its direction, deem appropriate.
(b) In accordance with the terms of the applicable Control Agreement, the Collection Agent shall instruct each Concentration Account Bank to allocate and remit Collections in accordance with Sections 2.07 and 2.08; provided, however, that the Administrative Agent may, at any time following a Trigger Event and shall, at the direction of any Managing Agent, revoke the Collection Agent’s authority with respect to each Concentration Account, direct each Concentration Account Bank to cease taking instructions from the Collection Agent or the Borrower and to thereafter take direction solely from the Administrative Agent in each case by delivery of a notice substantially in the form attached to the Control Agreement for such purpose. Neither the Borrower nor the Collection Agent will (i) add or terminate any bank as a Collection Account Bank or a Concentration Account Bank, (ii) close any Lock-Box, any Collection Account or any Concentration Account or open any new lock-box or account to function as a Lock-Box, Collection Account or Concentra...
Collections and Lock-Boxes. The Borrower or the Servicer on its behalf will instruct all Obligors to cause all Collections to be either (a) remitted to a Lock-Box and will cause each Lock-Box Bank to retrieve such Collections promptly and deposit the same to the respective Lock-Box Accounts or (b) deposited directly into a Lock-Box Account and will cause any Collections effectuated by pre-authorized debits of Obligor accounts to be deposited directly into a Lock-Box Account or the Agent's Account. Each Lock-Box Bank will remit Collections deposited into the respective Lock-box Accounts to the Agent's Account on a daily basis in accordance with Section 2.05. If the Borrower receives any Collections, the Borrower will remit such Collections (including, without limitation, any Collections deemed to have been received pursuant to Section 2.07) to a Lock-Box Account or the Agent's Account within one Business Day following the Borrower's receipt thereof. The Borrower will not add or terminate any bank as a Lock-Box Bank to or from those listed in Schedule VII or make any change in its instructions to obligors regarding payments to be made to the Borrower or payments to be made to any Lock Box or any Lock-Box Bank, unless the Agent shall have given its written consent to such addition, termination or change and all actions reasonably requested by the Agent to protect and perfect the interest of the Agent and the Lender in the Collections of Pledged Receivables have been taken and completed. The Agent shall have the exclusive ownership and control of the Lock-Box Accounts.
Collections and Lock-Boxes. Each Originator and the Collection Agent will instruct all Obligors to cause all Collections to be either (i) remitted to a Lock-Box to be retrieved therefrom by the applicable Collection Account Bank for prompt deposit to the applicable Collection Account or (ii) remitted directly to a Collection Account. If the Collection Agent or any Originator receives any Collections, such Originator or the Collection Agent shall immediately remit such Collections to the applicable Collection Account within two Business Days of receipt thereof and the Collection Agent or the applicable Originator will take all such actions as are reasonably necessary in the Collection Agent or Originator’s discretion or as reasonably requested by the Buyer to ensure that future payments from any Obligor be made to a Collection Account or Lock-Box. If the applicable Originator or the Collection Agent does not promptly (and in any event within two Business Days from the Buyer’s request) take such actions as the Buyer may reasonably request, then the Buyer, its assigns or designees, may, to the maximum extent permitted by law take such actions as the Buyer, its assigns or designees may, on its direction, deem appropriate.