Collections on Collateral Clause Samples
Collections on Collateral. The Grantor shall have the right to receive dividends and other proceeds from the Collateral in the ordinary course of business so long as the Obligations are being paid to the Secured Party in accordance with the Program Documents. If any of the Obligations are not paid in accordance with the Program Documents, at the option of the Secured Party, the Grantor's right to receive dividends and other proceeds of the Collateral and to use or dispose of such proceeds shall terminate, and any and all dividends and proceeds then held or thereafter received on or on account of the Collateral will be held or received by the Grantor in trust for the Secured Party and immediately delivered in kind to the Secured Party (duly endorsed to the Secured Party, if required), to be applied to the Obligations or held as Collateral, as the Secured Party shall elect. Upon such an occurrence, the Secured Party shall have the right at all times to receive, receipt for, endorse, assign, deposit and deliver, in the name of the Secured Party or in the name of the Grantor, any and all checks, notes, drafts and other instruments for the payment of money constituting proceeds of or otherwise relating to the Collateral; and the Grantor hereby authorizes the Secured Party to affix, by facsimile signature or otherwise, the general or special endorsement of the Grantor, in such manner as the Secured Party shall deem advisable, to any such instrument in the event the same has been delivered to or obtained by the Secured Party without appropriate endorsement, and the Secured Party and any collecting bank are hereby authorized to consider such endorsement to be a sufficient, valid and effective endorsement by the Grantor, to the same extent as though it were manually executed by the duly authorized representative of the Grantor, regardless of by whom or under what circumstances or by what authority such endorsement actually is affixed, without duty of inquiry or responsibility as to such matters, and the Grantor hereby expressly waives demand, presentment, protest and notice of protest or dishonor and all other notices of every kind and nature with respect to any such instrument.
Collections on Collateral. 7.1 Upon the occurrence and during the continuance of an Event of Default, the Trustee shall have the right from time to time to instruct the Authority and any other parties otherwise required to make payments to the Authority in connection with the Collateral to make such payments (including without limitation all proceeds, sums or other property arising out of the enforcement of any rights of the Authority with respect to the Collateral) instead directly to the Trustee or such other party or parties as the Trustee may designate.
7.2 If the Authority receives any such payments at any time when, pursuant to the provisions of this Section 7 or any notice delivered pursuant hereto, such payments should not have been accepted or should have been paid instead to another party, then such payments shall be received by the Authority in trust for, and shall be promptly deposited and delivered in kind to, the Trustee. The Trustee shall have the right to exercise all rights and remedies of the Authority under the Collateral Documents and to enforce the Senior Notes and the other Collateral Documents in accordance with the terms of the this Agreement.
Collections on Collateral. (i) Each Grantor hereby irrevocably authorizes Lender to notify each Person obligated with respect to any of the Collateral as an issuer of Pledged Interests or otherwise (each such Person a “Collateral Obligor”), to make payment directly to Lender and Lender may take control of the proceeds paid to Lender. Upon such notice from Lender, each Collateral Obligor is hereby authorized and directed by Grantor to make payments on any of the Collateral (including, without limitation, dividends and other distributions) directly to Lender, regardless of whether Grantor was previously making collections thereon. Until such notice is given, Grantor is authorized to retain and expend all payments made on Collateral to the extent such payments are permitted by the Loan Documents. ▇▇▇▇▇▇ agrees with Grantors that ▇▇▇▇▇▇ shall not elect to exercise these rights unless an Event of Default has occurred and is continuing.
(ii) If any Collateral Obligor fails or refuses to make payment on any Collateral when due, Lender is authorized, in its sole discretion, either in its own name or in the name of Grantor, to take such action as Lender shall deem appropriate for the collection of any such amounts. Regardless of any other provision hereof, Lender shall never be liable for its failure to collect, or for its failure to exercise diligence in the collection of, any amounts owed with respect to Collateral, nor shall it be under any duty whatever to anyone except Grantor to account for funds that it shall actually receive hereunder. Without limiting the generality of the foregoing, Lender shall have no responsibility for ascertaining any maturities, calls, conversions, exchanges, offers, tenders or similar matters relating to any Collateral, or for informing Grantor with respect to any of such matters (irrespective of whether ▇▇▇▇▇▇ actually has, or may be deemed to have, knowledge thereof).
(iii) The receipt of Lender to any Collateral Obligor shall be a full and complete release, discharge and acquittance to such Collateral Obligor, to the extent of any amount so paid to Lender.
Collections on Collateral. All collections on the Collateral shall be directed to a lockbox at Bank and shall not be commingled with the Borrowers' other funds or be deposited in any bank account of the Borrowers (except for the Cash Collateral Account), or used in any manner except to pay the Obligations or for such other purposes as expressly permitted hereunder. All collections on the Collateral (other than the proceeds of the liquidation of Technical Metals and Q.P.I. Consumer, which shall be immediately applied to the balance of Borrowers' Obligations) shall be deposited in the Cash Collateral Account of the appropriate Borrower maintained at Bank for that purpose, over which the Bank alone shall have the sole power of withdrawal. In no event shall Bank be obligated to advance to Borrowers any amounts in excess of the collected balance in the Cash Collateral Account. Borrowers shall be entitled to use the funds in the Cash Collateral Account in Borrowers' ordinary course of business. The crediting of items deposited in the Cash Collateral Account to the reduction of the Obligations shall be conditioned upon final payment of the item and if any item is not so paid, the amount of any credit given for it may be charged to the Obligations or to any other deposit account of such Borrower, whether or not the item is returned.
Collections on Collateral. Notwithstanding the Security Interest which is granted pursuant to Section 2.1 hereof, and except as otherwise provided hereunder or in any Loan Document, Debtor shall have the right to use and to continue to make collections on and receive any payments of Proceeds which may be made to, or for the benefit of, Debtor with respect to any of the Collateral so long as no Event of Default shall have occurred and be continuing. Upon the occurrence and during the continuance of an Event of Default, at the option of Secured Party, and except as prohibited by applicable law, Debtor's right to make collections on and receive Proceeds of the Collateral and to use or dispose of such Proceeds shall terminate, and any and all Proceeds then held or thereafter received on or on account of the Collateral will be held or received by Debtor in trust for Secured Party and immediately delivered in kind to Secured Party.
Collections on Collateral. So long as the Bank does not request that the Debtors on the Collateral be notified of the consignment thereof to Bank or that all collections be directed to a lock box at Bank, Borrower may make collections on the Collateral. In the Event of Default, all collections on the Collateral shall be the property of the Bank, shall be held in trust for the Bank by the Borrower and shall not be commingled with the Borrower's other funds or be deposited in any bank account of the Borrower , or used in any manner except to pay the Obligations. Upon an Event of Default, at Bank's discretion, the Bank may cause Borrower to immediately deposit all collections on the Collateral in a cash collateral account of Borrower maintained at Bank for that purpose, over which the Bank alone shall have the sole power of withdrawal. On a daily basis, Bank will apply all or part of the collected balance of the cash collateral account against the Obligations, the amount, order and method of such application to be in the sole discretion of Bank. In no event shall Bank be obligated to apply any funds deposited in the cash collateral account before the next business day after the day of deposit. Any part of the collected balance in the cash collateral account which the Bank elects not to apply to Borrower's obligations may be paid over and deposited by Bank to the Borrower's commercial account. The crediting of items deposited in the cash collateral account to the reduction of the Obligations shall be conditioned upon final payment of the item and if any item is not so paid, the amount of any credit given for it may be charged to the Obligations or to any other deposit account of the Borrower, whether or not the item is returned.
Collections on Collateral. 7.1 Upon the occurrence and during the continuance of an Event of Default, the Trustee shall have the right from time to time to instruct the Tribal Party and any other parties otherwise required to make payments to a Tribal Party in connection with the Collateral to make such payments (including all proceeds, sums or other property arising out of the enforcement of any rights of a Tribal Party with respect to the Collateral) instead directly to the Trustee or such other party or parties as the Trustee may designate.
7.2 If a Tribal Party receives any such payments at any time when, pursuant to the provisions of this Section 7 or any notice delivered pursuant hereto, such payments should not have been accepted or should have been paid instead to another party, then such payments shall be received by the Tribal Party in trust for, and shall be promptly deposited and delivered in kind to, the Trustee. The Trustee shall have the right to exercise all rights and remedies of the Authority under the Collateral Documents and to enforce the Senior Notes and the other Collateral Documents in accordance with the terms of the this Agreement.
Collections on Collateral. 7.1 Upon the occurrence and during the continuance of an Event of Default, the Trustee shall have the right from time to time to instruct any party otherwise required to make payments to the Issuer in connection with the Collateral to make such payments (including without limitation all proceeds, sums or other property arising out of the enforcement of any rights of the Issuer with respect to the Collateral) instead directly to the Trustee or such other party or parties as the Trustee may designate for application to and satisfaction of the Secured Obligations.
7.2 If the Issuer receives any such payments at any time when, pursuant to the provisions of this SECTION 7 or any written notice delivered pursuant hereto, such payments should not have been accepted or should have been paid instead to another party, then such payments shall be received by the Issuer in trust for, and shall be promptly deposited and delivered in kind to, the Trustee. During the existence and continuance of an Event of Default, the Trustee shall have the right to exercise all rights and remedies of the Issuer under the Collateral Documents and to enforce the First Mortgage Notes and the other Collateral Documents in accordance with the terms of this Agreement.
Collections on Collateral. All collections on the Collateral shall be directed to a lock box at Bank. All collections on the Collateral shall be the property of Bank, shall be held in trust for Bank by Borrower and shall not be commingled with Borrower's other funds or be deposited in any bank account of Borrower (except for the Cash Collateral Account), or used in any manner except to pay the Obligations. Borrower immediately shall deposit any collections on the Collateral which are received by Borrower in the Cash Collateral Account maintained at Bank for that purpose, over which Bank alone shall have the sole power of withdrawal. On a daily basis, Bank will apply all or part of the collected balance of the Cash Collateral Account against the Obligations (to the extent outstanding), with the amount, order and method of such application to be in the sole discretion of Bank. In no event shall Bank be obligated to apply any funds deposited in the Cash Collateral Account before the second business day after the day of deposit. Any part of the collected balance in the Cash Collateral Account which Bank elects not to apply to Borrower's obligations shall be paid over and deposited by Bank to Borrower's commercial account. The crediting of items deposited in the Cash Collateral Account to the reduction of the Obligations shall be conditioned upon final payment of the item and if any item is not so paid, the amount of any credit given for it may be charged to the Obligations or to any other deposit account of Borrower, whether or not the item is returned.