Lockbox; Account Collection Services Sample Clauses
POPULAR SAMPLE Copied 1 times
Lockbox; Account Collection Services. As and when directed by Bank from time to time, at Bank’s option and at the sole and exclusive discretion of Bank (regardless of whether an Event of Default has occurred), Borrower shall direct each Account Debtor (and each depository institution where proceeds of Accounts are on deposit) to remit payments with respect to the Accounts to a lockbox account established with Bank or to wire transfer payments to a cash collateral account that Bank controls (collectively, the “Lockbox”). It will be considered an immediate Event of Default if the Lockbox is not set-up and operational within forty-five (45) days from the date of such direction by Bank. Until such Lockbox is established, the proceeds of the Accounts shall be paid by the Account Debtors to an address consented to by Bank. Upon receipt by Borrower of such proceeds, the Borrower shall immediately transfer and deliver same to Bank, along with a detailed cash receipts journal. Provided no Event of Default exists or an event that with notice or lapse of time will be an Event of Default, within three (3) days of receipt of such amounts by Bank, Bank will turn over to Borrower the proceeds of the Accounts other than Collections with respect to Financed Receivables and the amount of Collections in excess of the amounts for which Bank has made an Advance to Borrower, less any amounts due to Bank, such as the Finance Charge, the Facility Fee, payments due to Bank, other fees and expenses, or otherwise; provided, however, Bank may hold such excess amount with respect to Financed Receivables as a reserve until the end of the applicable Reconciliation Period if Bank, in its discretion, determines that other Financed Receivable(s) may no longer qualify as an Eligible Account at any time prior to the end of the subject Reconciliation Period. This Section does not impose any affirmative duty on Bank to perform any act other than as specifically set forth herein. All Accounts and the proceeds thereof are Collateral and if an Event of Default occurs, Bank may apply the proceeds of such Accounts to the Obligations.
Lockbox; Account Collection Services. Seller shall enter into a three party agreement (the "Lockbox Agreement") with Buyer and a lockbox provider (the "Lockbox Provider"). The Lockbox Agreement and Lockbox Provider shall be acceptable to Buyer. Seller shall use the lockbox address as the payment address on all invoices issued by Seller and shall direct all its Account Debtors to remit their payments to the lockbox address. The Lockbox Agreement shall provide that the Lockbox Provider shall remit all collections received in the lockbox to Buyer. Upon Buyer's receipt of such collections, and provided that there does not then exist an Event of Default or event that with notice, lapse or time or otherwise would constitute an Event of Default, and subject to Buyer's rights in the Collateral, Buyer agrees to remit promptly to Seller the amount of the receivables collections it receives with respect to receivables other than Purchased Receivables. It is understood and agreed by Seller that this Section does not impose any affirmative duty on Buyer to do any act other than to turn over such amounts. All such receivables and collections are Collateral and in the event of Seller's default hereunder, Buyer shall have no duty to remit collections of Collateral and may apply such collections to the obligations hereunder and Buyer shall have the rights of a secured party under the California Uniform Commercial Code.
Lockbox; Account Collection Services. Borrower and Lender shall immediately enter into an agreement acceptable to Lender (the "Lockbox Agreement"). Borrower shall use the lockbox address as the remit to and payment address for all of Borrower's Collections and it will be considered an immediate Event of Default if this does not occur or is not operational within 45 days of the date of this Agreement AH Collections received to the lockbox will be deposited to a non-interest bearing bank- control account maintained with Lender and Borrower will not have access to that account. Borrower will (i) immediately notify, transfer and deliver to Lender all Collections Borrower receives and (ii) deliver to Lender a detailed cash receipt's journal on Friday of each week until the lockbox is operational. Additionally, Lender may request that Account Debtor's pay (by wire transfer or otherwise) Collections to Lender directly.
Lockbox; Account Collection Services. (a) Borrower shall direct each Account Debtor (and each depository institution where proceeds of Accounts are on deposit) to remit payments with respect to the Accounts to a lockbox account established with Bank or to wire transfer payments to a cash collateral account that Bank controls (collectively, the “Lockbox”). It will be considered an immediate Event of Default if the Lockbox is not set-up and operational within sixty (60) days following the Effective Date.
(b) Until such Lockbox is established, the proceeds of the Accounts shall be paid by the Account Debtors to an address consented to by Bank. Upon receipt by Borrower of proceeds of Accounts, Borrower shall immediately transfer and deliver same to Bank, along with a detailed cash receipts journal. Provided no Event of Default exists or an event that with notice or lapse of time will be an Event of Default, within three (3) days of receipt of such amounts by Bank, Bank will turn over to Borrower the proceeds of the Accounts not otherwise applied to Obligations which are then due and owing. This Section does not impose any affirmative duty on Bank to perform any act other than as specifically set forth herein. All Accounts and the proceeds thereof are Collateral and if an Event of Default occurs and is continuing, Bank may apply the proceeds of such Accounts to the Obligations.
Lockbox; Account Collection Services. Upon Lender’s request, Borrower and Lender shall immediately enter into a remittance processing services agreement acceptable to Lender (the “Lockbox Agreement”). Borrower shall use the lockbox address as the remit to and payment address for all of Borrower’s Collections and it will be considered an immediate Event of Default if this does not occur or is not operational within 30 days of the date of Lender’s request that Borrower enter into the Lockbox Agreement. All Collections received to the lockbox will be deposited to a non-interest bearing bank-control account maintained with Lender and Borrower will not have access to that account. Borrower will (i) immediately notify, transfer and deliver to Lender all Collections Borrower receives and (ii) deliver to Lender a detailed cash receipt’s journal on Friday of each week until the lockbox is operational. Additionally, upon an Event of Default, Lender may request that Account Debtors pay (by wire transfer or otherwise) Collections to Lender directly.
Lockbox; Account Collection Services. (a) Prior to the making of any Revolving Advance, Borrower shall direct each Account Debtor (and each depository institution where proceeds of Accounts are on deposit) to remit payments with respect to the Accounts to a lockbox account established with Bank or to wire transfer payments to a cash collateral account that Bank controls (collectively, the “Lockbox”). It will be considered an immediate Event of Default if the Lockbox is not set-up and operational as of the date set forth in the preceding sentence.
(b) Until such Lockbox is established, the proceeds of the Accounts shall be paid by the Account Debtors to an address consented to by the Bank. Upon receipt by Borrower of such proceeds, Borrower shall immediately transfer and deliver same to Bank, for the ratable benefit of the Bank, along with a detailed cash receipts journal. Provided no Event of Default exists or an event that with notice or lapse of time will be an Event of Default, within three (3) Business Days of receipt of such amounts by Bank, Bank will turn over to Borrower the proceeds of the Accounts, less any amounts due to Bank, such as payments due to the Bank, other fees and expenses, or otherwise. This Section does not impose any affirmative duty on Bank to perform any act other than as specifically set forth herein. All Accounts and the proceeds thereof are Collateral and if an Event of Default occurs, Bank may apply the proceeds of such Accounts to the Obligations. Without limiting the foregoing, the Bank may exercise dominion and control over the Lockbox (and the amounts in the Lockbox) in their sole discretion.
Lockbox; Account Collection Services. Borrower and Lender have entered into a Remittance Processing Services Agreement (the “Lockbox Agreement”). Borrower shall continue to use the lockbox address as the remit to and payment address for all of Borrower’s Collections and it will be considered an immediate Event of Default if this does not occur. All Collections received to the lockbox will be deposited to a non-interest bearing cash collateral account maintained with Lender and Borrower will not have access to that account. Borrower will immediately notify, transfer and deliver to Lender all Collections Borrower receives. Additionally, Lender may request that Account Debtors pay (by wire transfer or otherwise) Collections to Lender directly.
Lockbox; Account Collection Services. (a) Borrower shall direct each Account Debtor (and each depository institution where proceeds of Accounts are on deposit) to remit payments with respect to the Accounts to a lockbox account established with Bank or to wire transfer payments to a cash collateral account that Bank controls (collectively, the “Lockbox”). It will be considered an immediate Event of Default if the Lockbox is not established and operational on the Effective Date and at all times thereafter.
(b) Provided no Event of Default exists or an event that with notice or lapse of time will be an Event of Default, within one (1) Business Day of receipt of any proceeds of the Accounts by Bank (whether received by Bank in the Lockbox, directly from Borrower, or otherwise), Bank will turn over to Borrower such proceeds other than (i) Collections applied by Bank pursuant to Section 2.5 of this agreement, and (ii) such proceeds which shall be used by Bank to repay any other amounts then due and payable to Bank, such as accrued interest, the Facility Fee, and Bank Expenses.
(c) This Section 2.6 does not impose any affirmative duty on Bank to perform any act other than as specifically set forth herein. All accounts and the proceeds thereof are Collateral, and if an Event of Default has occurred and is continuing, Bank may, without notice, apply the proceeds of such Accounts to the Obligations.
Lockbox; Account Collection Services. No later than sixty (60) days after the Effective Date and at all time thereafter, Borrower shall direct each Account Debtor (and each depository institution where proceeds of Accounts are on deposit) to thereafter remit payments with respect to the Accounts to a lockbox account with Bank or to wire transfer payments to a cash collateral account with Bank (collectively, the “Lockbox”). Subject to the repayment provisions of Section 2.1.1(b), Bank shall sweep all amounts from the Lockbox to the Designated Deposit Account on a daily (or as soon thereafter as is practical) basis. Provided however, if Borrower’s Net Cash is less than Twenty Million Dollars ($20,000,000) at any time, until Borrower’s Net Cash is again greater than or equal to Twenty Million Dollars ($20,000,000), Bank shall first apply all amounts from the Lockbox to the outstanding Obligations and any excess shall be swept into the Designated Deposit Account. This Section does not impose any affirmative duty on Bank to perform any act other than as specifically set forth herein. All Accounts and the proceeds thereof are Collateral and upon the occurrence and during the continuance of an Event of Default or if Borrower’s Net Cash is less than Twenty Million Dollars ($20,000,000) at any time, until Borrower’s Net Cash is again greater than or equal to Twenty Million Dollars ($20,000,000), Bank may apply the proceeds of such Accounts to the Obligations then due and owing.
Lockbox; Account Collection Services. (i) Borrower shall direct each Obligor under the Financed Loans (and each depository institution where payments with respect to Financed Loans are on deposit) to remit payments with respect to the Financed Loans to a lockbox account established with Bank or to wire transfer payments to a cash collateral account that Bank controls (collectively, the “Lockbox”). It will be considered an Event of Default if the Lockbox is not established and operational on the Closing Date.
(ii) Provided no Event of Default exists or an event that with notice or lapse of time will be an Event of Default, within one (1) Business Day of receipt of any amounts by Bank with respect to Financed Loans (whether directly from Borrower or into the Lockbox), Bank will turn over to the Collections DDA such amounts received in respect of Financed Loans other than any amounts which are then due and owing to Bank hereunder. In the event the Borrower receives any payment on account of any Financed Loan directly from any Obligor, Borrower shall, within one (1) Business Day after receipt of such payment, remit such payments directly to the Lockbox.