Common use of Collections from Accounts Receivable Clause in Contracts

Collections from Accounts Receivable. (a) At any time when the Agent Bank may exercise remedies under Section 9 of this Agreement, the Agent Bank shall have the right to notify account debtors obligated on any or all Accounts Receivable to make payments directly to the Agent Bank. (b) Until the Agent Bank requests that account debtors of Accounts Receivable be notified of the Agent Bank's security interest created at a time when the Agent Bank may exercise remedies under Section 9 of this Agreement, the Assignors shall continue to collect payments on the Assignors' Accounts Receivable and use the proceeds thereof in the ordinary course of business. In any event, if any Event of Default has occurred and is continuing, the Assignors may not use the proceeds from payments on Accounts Receivable to satisfy any indebtedness to any Person other than the Agent Bank. If the Assignors collect payments on any Accounts Receivable after an Event of Default has occurred and while it is continuing, the Assignors shall hold the proceeds received from that collection as a constructive trust for the Agent Bank and shall turn over such proceeds to the Agent Bank immediately upon demand in the identical form received, if so requested by the Agent Bank. In the event of such payment, the Agent Bank shall credit the proceeds as payment of the Secured Obligations first to costs or penalties if any, second to interest, and then to principal. Any credit given to the Assignors for proceeds in form other than cash shall be conditional upon final payment to the Assignors in cash or solvent credit of the items, and if any item is not paid the amount of any credit given for it shall be charged to the Assignors whether or not the item is returned, and such amount shall be a part of the obligations secured by this Agreement. (c) No Assignor shall have power to, and no Assignor shall, waive, compromise or discount any Accounts Receivable, without the prior written consent of the Agent Bank, except for (1) ordinary trade discounts and allowances for payment within thirty days of the date of invoice or billing, and (2) discounts or allowances in the ordinary course of collecting Accounts Receivable.

Collections from Accounts Receivable. (a) a. At any time when the Agent Administrative Bank may exercise remedies under Section SECTION 9 of this Agreement, the Agent Administrative Bank shall have the right to notify account debtors obligated on any or all Accounts Receivable to make payments directly to the Agent Administrative Bank. (b) b. Until the Agent Administrative Bank requests that account debtors of Accounts Receivable be notified of the Agent Administrative Bank's security interest created at a time when the Agent Administrative Bank may exercise remedies under Section SECTION 9 of this Agreement, the Assignors Borrower shall continue to collect payments on the Assignors' Borrower's Accounts Receivable and use the proceeds thereof in the ordinary course of business. In any event, if any Event of Default has occurred and is continuing, the Assignors Borrower may not use the proceeds from payments on Accounts Receivable to satisfy any indebtedness to any Person other than the Agent Administrative Bank. If the Assignors collect Borrower collects payments on any Accounts Receivable after an Event of Default has occurred and while it is continuing, the Assignors Borrower shall hold the proceeds received from that collection as a constructive trust for the Agent Administrative Bank and shall turn over such proceeds to the Agent Administrative Bank immediately upon demand in the identical form received, if so requested by the Agent Administrative Bank. In the event of such payment, the Agent Administrative Bank shall credit the proceeds as payment of the Secured Obligations first to costs or penalties if any, second to interest, and then to principal. Any credit given to the Assignors Borrower for proceeds in form other than cash shall be conditional upon final payment to the Assignors Borrower in cash or solvent credit of the items, and if any item is not paid the amount of any credit given for it shall be charged to the Assignors Borrower whether or not the item is returned, and such amount shall be a part of the obligations secured by this Agreement. (c) No Assignor c. The Borrower shall have no power to, and no Assignor shallshall not, waive, compromise or discount any Accounts Receivable, without the prior written consent of the Agent Administrative Bank, except for (1) ordinary trade discounts and allowances for payment within thirty days of the date of invoice or billing, and (2) discounts or allowances in the ordinary course of collecting Accounts Receivable. d. It is the understanding of Administrative Bank and Borrower that Borrower's Accounts Receivable will ordinarily not be evidenced by promissory notes, trade acceptances, Instruments or Chattel Paper. To the extent that any Account Receivable shall be evidenced by a promissory note, trade acceptance, Instrument or Chattel Paper with an original principal balance of $50,000 or more, the Borrower (as appropriate) shall immediately deliver such promissory note, trade acceptance, Instrument or Chattel Paper to the Administrative Bank, appropriately endorsed to the Administrative Bank's order. The Borrower authorizes the Administrative Bank to endorse same on the Borrower's behalf and hereby waives presentment, demand, notice of dishonor, protest and notice of protest and all other notices with respect thereto.

Collections from Accounts Receivable. (a) At any time when the Agent Bank Creditor may exercise remedies under Section 9 of this Agreement, the Agent Bank Creditor shall have the right to notify account debtors obligated on any or all Accounts Receivable to make payments directly to the Agent BankCreditor. (b) Until the Agent Bank Creditor requests that account debtors of Accounts Receivable be notified of the Agent BankCreditor's security interest created at a time when the Agent Bank Creditor may exercise remedies under Section 9 of this Agreement, the Assignors Debtor shall continue to collect payments on the Assignors' Debtor's Accounts Receivable and use the proceeds thereof in to reduce the ordinary course principal amount of businessthe Note, as provided therein. In any event, if any Event of Default has occurred and is continuing, the Assignors Debtor may not use the proceeds from payments on Accounts Receivable to satisfy any indebtedness to any Person other than the Agent BankCreditor. If the Assignors collect Debtor collects payments on any Accounts Receivable after an Event of Default has occurred and while it is continuing, the Assignors Debtor shall hold the proceeds received from that collection as a constructive trust for the Agent Bank Creditor and shall turn over such proceeds to the Agent Bank Creditor immediately upon demand in the identical form received, if so requested by the Agent BankCreditor. In the event of such payment, the Agent Bank Creditor shall credit the proceeds as payment of the Secured Obligations first to costs or penalties if any, second to interest, and then to principal. Any credit given to the Assignors Debtor for proceeds in form other than cash shall be conditional upon final payment to the Assignors Debtor in cash or solvent credit of the items, and if any item is not paid the amount of any credit given for it shall be charged to the Assignors Debtor whether or not the item is returned, and such amount shall be a part of the obligations secured by this Agreement. (c) No Assignor The Debtor shall have no power to, and no Assignor shallshall not, waive, compromise or discount any Accounts Receivable, without the prior written consent of the Agent BankCreditor, except for (1) ordinary trade discounts and allowances for payment within thirty days of the date of invoice or billing, and (2) discounts or allowances in the ordinary course of collecting Accounts Receivable. (d) If any Account Receivable shall be evidenced by a promissory note, trade acceptance or other instrument with an original principal balance of One Thousand Dollars ($1,000.00) or more, the Debtor (as appropriate) shall immediately deliver such instrument to the Creditor, appropriately endorsed to the Creditor's order. The Debtor authorizes the Creditor to endorse same on the Debtor's behalf and hereby waives presentment, demand, notice of dishonor, protest and notice of protest and all other notices with respect thereto.

Collections from Accounts Receivable. (a) At any time when the Agent Bank Secured Party may exercise remedies under Section 9 of this Agreement, the Agent Bank Secured Party shall have the right to notify account debtors obligated on any or all Accounts Receivable to make payments directly to the Agent BankSecured Party. (b) Until the Agent Bank Secured Party requests that account debtors of Accounts Receivable be notified of the Agent BankSecured Party's security interest interests created at a time when the Agent Bank may exercise remedies under Section 9 of pursuant to this Agreement, the Assignors Debtor shall continue to collect payments on the Assignors' its Accounts Receivable and use the proceeds thereof in the ordinary course of business. In any event, if any Event of Default has occurred and is continuing, the Assignors Debtor may not use the proceeds from payments on Accounts Receivable to satisfy any indebtedness to any Person person other than the Agent BankSecured Party. If the Assignors collect Debtor collects payments on any Accounts Receivable beginning twenty-four (24) hours after an Event of Default has occurred and while it is continuing, the Assignors Debtor shall hold the proceeds received from that collection as a constructive in trust for the Agent Bank Secured Party and shall turn over such proceeds to the Agent Bank Secured Party immediately upon demand in the identical form received, if so requested by the Agent BankSecured Party. In the event of such payment, the Agent Bank Secured Party shall credit the proceeds as payment of the Secured Obligations first to costs or penalties if any, second to interest, and then to principal. Any credit given to the Assignors Debtor for proceeds in form other than cash shall be conditional upon final payment to the Assignors Debtor in cash or solvent credit of the items, and if any item is not paid the amount of any credit given for it shall be charged to the Assignors Debtor as appropriate whether or not the item is returned, and such amount shall be a part of the obligations secured by this Agreement. (c) No Assignor The Debtor shall not have the power to, and no Assignor shallnor shall the Debtor, waive, compromise or discount any Accounts Receivable, without the prior written consent of the Agent BankSecured Party, except for (1) ordinary trade discounts and allowances for payment within thirty (30) days of the date of invoice or billing, and (2) discounts or allowances in the ordinary course of collecting Accounts Receivable, amounting to not more than $50,000.00 in the aggregate in any fiscal year of the Debtor. (d) If any Accounts Receivable shall be evidenced by a promissory note, trade acceptance or other instrument, the Debtor shall immediately deliver such instrument to the Secured Party appropriately endorsed to the Secured Party's order. The Debtor authorizes the Secured Party to endorse same on the Debtor's behalf. The Debtors hereby waives presentments, demand, notice of dishonor, protest and notice of protest and all other notices with respect thereto.

Collections from Accounts Receivable. (a) At any time when After the Agent Bank may exercise remedies under Section 9 occurrence of this Agreementan Event of Default, the Agent Bank shall have the right to notify account debtors obligated on any or all Accounts Receivable to make payments directly to the Agent Bank. (b) Until the Agent Bank requests that account debtors of Accounts Receivable be notified of the Agent Bank's security interest created at a time when the Agent Bank may exercise remedies under Section 9 of this Agreement, the Assignors shall continue to collect payments on the Assignors' Accounts Receivable and use the proceeds thereof in the ordinary course of business. In any event, if any Event of Default has occurred and is continuing, the Assignors may not use the proceeds from payments on Accounts Receivable to satisfy any indebtedness to any Person other than the Agent Bank. If the Assignors collect payments on any Accounts Receivable after an Event of Default has occurred and while it is continuing, the Assignors shall hold the proceeds received from that collection as a constructive trust for the Agent Bank and shall turn over such proceeds to the Agent Bank immediately upon demand in the identical form received, if so requested by the Agent Bank. In the event of such payment, the Agent Bank shall credit the proceeds as payment of the Secured Obligations first to costs or penalties if any, second to interest, and then to principal. Any credit given to the Assignors for proceeds in form other than cash shall be conditional upon final payment to the Assignors in cash or solvent credit of the items, and if any item is not paid the amount of any credit given for it shall be charged to the Assignors whether or not the item is returned, and such amount shall be a part of the obligations secured by this Agreement. (c) No Assignor shall have power to, and no Assignor shall, waive, compromise or discount any Accounts Receivable, without the prior written consent of the Agent Bank, except for (1) ordinary trade discounts and allowances for payment within thirty days of the date of invoice or billing, and (2) discounts or allowances in the ordinary course of collecting Accounts Receivable.

Collections from Accounts Receivable. (a) At any time when the Agent Bank Payee may exercise remedies under Section 9 of this Agreement, the Agent Bank Payee shall have the right to notify account debtors obligated on any or all Accounts Receivable to make payments directly to the Agent BankPayee. (b) Until the Agent Bank requests that account debtors of Accounts Receivable be notified of the Agent Bank's security interest created at a time when the Agent Bank may exercise remedies under Section 9 of this Agreement, the Assignors shall continue to collect payments on the Assignors' Accounts Receivable and use the proceeds thereof in the ordinary course of business. In any event, if If any Event of Default has occurred and is continuing, the Assignors Maker may not use the proceeds from payments on such Accounts Receivable to satisfy any indebtedness to any Person other than the Agent BankPayee. Maker covenants and agrees that, during the continuance of any Event of Default, Maker shall have an affirmative obligation under this Agreement to continue active collections of Accounts Receivable. If the Assignors collect Maker collects payments on any such Accounts Receivable after an Event of Default has occurred and while it is continuing, the Assignors Maker shall hold the proceeds received from that collection up to the amount of the outstanding Secured Obligations as a constructive trust for the Agent Bank Payee and shall turn over such proceeds to the Agent Bank Payee immediately upon demand in the identical form received, if so requested by the Agent BankPayee. In the event of such payment, the Agent Bank Payee shall credit the proceeds as payment of the Secured Obligations first to costs or penalties if any, second to interest, and then to principal. Any credit given to the Assignors Maker for proceeds in form other than cash Accounts Receivable shall be conditional upon final payment adjusted to reflect the Assignors in actual cash or solvent credit of the items, received by Payee for such Accounts Receivable and if any item is not paid the amount of any credit given for it difference shall be charged to the Assignors whether or not the item is returnedMaker, and such amount shall be a part of the obligations secured by this Agreement. (c) No Assignor The Maker shall have no power to, and no Assignor shallshall not, waive, compromise or discount any Accounts Receivable, without the prior written consent of the Agent BankPayee, except for (1) ordinary trade discounts and allowances for payment within thirty days of the date of invoice or billing, and (2) discounts or allowances in the ordinary course of collecting such Accounts Receivable. (d) If the Payee exercises remedies under Section 9 of this Agreement and if any Account Receivable shall be evidenced by a promissory note, trade acceptance or other instrument with an original principal balance of $5,000.00 or more, the Maker shall immediately deliver such instrument to the Payee, appropriately endorsed to the Payee's order. The Maker authorizes the Payee to endorse same on the Maker's behalf and hereby waives presentment, demand, notice of dishonor, protest and notice of protest and all other notices with respect thereto.