Common use of Deposits; Accounts Clause in Contracts

Deposits; Accounts. (a) Unless the Agent shall otherwise consent in writing, which consent shall not be unreasonably withheld, each Obligor shall keep all its bank and deposit accounts only with the Agent, other Lenders, financial institutions designated on EXHIBIT 10.4.2 or any financial institution approved by the Agent. (b) To the extent specified by prior written notice from the Agent, whether prior to or after the occurrence of an Event of Default, all sums collected or received and all property recovered or possessed by any Obligor in connection with any Credit Security shall be received and held by such Obligor in trust for and on the Lenders' behalf, shall be segregated from the assets and funds of such Obligor, and shall be delivered to the Agent for the benefit of the Lenders. (c) In addition, the Obligors shall direct that all Accounts payable by Medicare or Medicaid and all Accounts payable in an amount greater than $50 be paid directly into a locked box account maintained with any financial institution designated on Exhibit 10.4.2 or such other financial institution as approved by the Agent (which, in the event such financial institution is not a Lender, must be party to an Assignment Agreement in form and substance satisfactory to the Agent).

Appears in 2 contracts

Samples: Credit Agreement (Ameripath Inc), Credit Agreement (Ameripath Inc)

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Deposits; Accounts. (a) Unless the Agent shall otherwise consent in writing, which consent shall not be unreasonably withheld, each Obligor shall keep all its bank and deposit accounts only with the Agent, other Lenders, financial institutions designated on EXHIBIT Exhibit 10.4.2 or any financial institution -------------- approved by the Agent. (b) To the extent specified by prior written notice from the Agent, whether prior to or after the occurrence of an Event of Default, all sums collected or received and all property recovered or possessed by any Obligor in connection with any Credit Security shall be received and held by such Obligor in trust for and on the Lenders' behalf, shall be segregated from the assets and funds of such Obligor, and shall be delivered to the Agent for the benefit of the Lenders. (c) In addition, the Obligors shall direct that all Accounts payable by Medicare or Medicaid and all Accounts payable in an amount greater than $50 be paid directly into a locked box account maintained with any financial institution designated on Exhibit 10.4.2 or such other financial institution as approved by the Agent (which, in the event such financial institution is not a Lender, must be party to an Assignment Agreement in form and substance satisfactory to the Agent).

Appears in 1 contract

Samples: Credit Agreement (Ameripath Inc)

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Deposits; Accounts. (a) Unless the Agent shall otherwise consent in writing, which consent shall not be unreasonably withheld, each Obligor shall keep all its bank and deposit accounts only with the Agent, other Lenders, financial institutions designated on EXHIBIT Exhibit 10.4.2 or any financial institution approved by the Agent. (b) To the extent specified by prior written notice from the Agent, whether prior to or after the occurrence of an Event of Default, all sums collected or received and all property recovered or possessed by any Obligor in connection with any Credit Security shall be received and held by such Obligor in trust for and on the Lenders' behalf, shall be segregated from the assets and funds of such Obligor, and shall be delivered to the Agent for the benefit of the Lenders. (c) In addition, the Obligors shall direct that all Accounts payable by Medicare or Medicaid and all Accounts payable in an amount greater than $50 be paid directly into a locked box account maintained with any financial institution designated on Exhibit 10.4.2 or such other financial institution as approved by the Agent (which, in the event such financial institution is not a Lender, must be party to an Assignment Agreement in form and substance satisfactory to the Agent).

Appears in 1 contract

Samples: Credit Agreement (Ameripath Inc)

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