Common use of GRANTOR'S RIGHT TO POSSESSION AND TO COLLECT ACCOUNTS Clause in Contracts

GRANTOR'S RIGHT TO POSSESSION AND TO COLLECT ACCOUNTS. Until an Event of Default has occurred and except as otherwise provided below with respect to accounts, Grantor may have possession of the tangible personal property and beneficial use of all the Collateral and may use it in any lawful manner not inconsistent with this Agreement or the other Loan Documents, provided that Grantor's right to possession and beneficial use shall not apply to any Collateral where possession of the Collateral by the Secured Party is required by law to perfect the Secured Party's security interest in such Collateral. Until an Event of Default has occurred and until otherwise notified by the Secured Party, Grantor may collect any of the Collateral consisting of accounts. At any time while an Event of Default exists, subject to the provisions of Section 8, the Secured Party may exercise its rights to collect the accounts and to notify account debtors to make payments directly to the Secured Party for application to the Obligations. If the Secured Party at any time has possession of any Collateral, whether before or after an Event of Default, the Secured Party shall be deemed to have exercised reasonable care in the custody and preservation of the Collateral if the Secured Party takes such action for that purpose as Grantor shall request or as the Secured Party, in the Secured Party's sole discretion, shall deem appropriate under the circumstances, but failure to honor any request by Grantor shall not of itself be deemed to be a failure to exercise reasonable care. The Secured Party shall not be required to take any steps necessary to preserve any rights in the Collateral against prior parties, nor to protect, preserve or maintain any security interest given to secure the Obligations.

GRANTOR'S RIGHT TO POSSESSION AND TO COLLECT ACCOUNTS. Until an Event of Default has occurred and except as otherwise provided below with respect to accountsherein, Grantor may have possession of the tangible personal property and beneficial use of all the Collateral and may use it in any lawful manner not inconsistent with this Agreement or the other Loan Related Documents, provided that Grantor's right . Prior to possession and beneficial use shall not apply to any Collateral where possession of the Collateral by the Secured Party is required by law to perfect the Secured Party's security interest in such Collateral. Until an Event of Default has occurred and until otherwise notified or direction by Secured Party to the Secured Partycontrary, Grantor may shall collect any of the Collateral consisting of accountsAccounts. At any time while after an Event of Default existsDefault, subject to the provisions of Section 8, the Secured Party may exercise its rights to directly collect the accounts Accounts and to notify account debtors Account Debtors to make payments directly to the Secured Party for application to the ObligationsIndebtedness and Grantor authorizes and directs the Account Debtors, if Secured Party exercises such option, to make payments on the Account to Secured Party. If the Secured Party at any time has possession or control of any Collateral, whether before or after an Event of Default, the Secured Party shall be deemed to have exercised reasonable care in the custody and preservation of the Collateral if the Secured Party takes such action for that purpose as Grantor shall request or as the Secured Party, in the Secured Party's sole discretion, shall deem appropriate under the circumstances, but failure to honor any request by Grantor shall not of itself be deemed to be a failure to exercise reasonable care. The Secured Party shall not be required to take any steps necessary to preserve any rights in the Collateral against prior parties, nor to protect, preserve or maintain any security interest given to secure the ObligationsCollateral. Secured Party shall have the right to direct who shall collect and service the Accounts.