Common use of DIRECT GRANTOR TO DISPOSE OF COLLATERAL Clause in Contracts

DIRECT GRANTOR TO DISPOSE OF COLLATERAL. If an Event of Default shall occur and be continuing, upon the direction of the Trustee, the Collateral Trustee may direct a Grantor to sell, assign or otherwise liquidate or dispose of all, or from time to time any portion of its Collateral and such Grantor shall do so, and the Collateral Trustee may, at its option, take possession of the Proceeds of such Collateral. The Collateral Trustee may direct a Grantor to direct that all Proceeds of such Collateral be paid directly to the Collateral Trustee or may permit the Proceeds of such Collateral to be paid to such Grantor and, if directed by the Collateral Trustee, all such Proceeds consisting of cash, checks or near-cash items shall be held by such Grantor in trust for the Collateral Trustee, segregated from other funds of such Grantor and shall forthwith upon receipt by such Grantor, be turned over to the Collateral Trustee, in the same form received by such Grantor (appropriately indorsed or assigned by such Grantor to the order of the Collateral Trustee or in such other manner as shall be satisfactory to the Collateral Trustee) for deposit into the Collateral Account.