Common use of Maintenance of Security; Insurance; Authorization to File Financing Statements; Operating Accounts; Transfer Orders Clause in Contracts

Maintenance of Security; Insurance; Authorization to File Financing Statements; Operating Accounts; Transfer Orders. (i) The Borrower shall execute and deliver, or cause the appropriate Person to execute and deliver, to the Lenders all mortgages, deeds of trust, security agreements, financing statements, assignments and such other documents and instruments (including division and transfer orders), and supplements and amendments thereto, and take such other actions as the Required Lenders deem reasonably necessary or desirable in order to (a) grant and maintain as valid, enforceable, first-priority, perfected Liens (subject only to the Permitted Liens), all Liens granted to secure the Obligations or (b) monitor or control the proceeds from Collateral. (ii) The Borrower and each Guarantor which has granted a security interest to the Lenders, as applicable, authorizes the Lenders to complete and file, from time to time, financing statements naming the Borrower and each such Guarantor, as applicable, as debtor to perfect Liens granted to secure the Obligations. (iii) The Borrower shall take such action as may be requested from time to time by the Required Lenders to maintain, or cause to be in effect at all times, first and prior Liens (subject to Permitted Liens) in favor of the Lenders by instruments executed by the appropriate Person and properly recorded in the applicable jurisdictions on Oil and Gas Properties having an aggregate PV-10 Value of at least eighty percent (80%) of the PV-10 Value of all such Oil and Gas Properties. (iv) The Borrower and each Guarantor will at all times maintain or cause to be maintained hazard and liability insurance and additional insurance covering such risks as are customarily carried by businesses similarly situated, all such insurance to be in amounts and from insurers reasonably acceptable to the Required Lenders, maintained by Borrower, naming the Lenders as loss payee or as an additional insured, as applicable, and, upon any renewal of any such insurance and at other times upon request by the Required Lenders, promptly furnish to the Lenders evidence, reasonably satisfactory to the Required Lenders, of the maintenance of such insurance. The Lenders shall have the right to collect, and the Borrower hereby assigns to the Lenders, any and all monies that may become payable under any policies of insurance by reason of damage, loss, or destruction of any of the Collateral. In the event of any damage, loss, or destruction for which insurance proceeds relating to business interruption, if any, or Collateral exceeds $500,000, the Required Lenders may, at their option, apply all such sums or any part thereof received by it toward the payment of the Obligations, whether matured or unmatured, application to be made first to interest and then to principal, and shall deliver to the Borrower the balance, if any, after such application has been made. In the event of any such damage, loss, or destruction for which insurance proceeds are $500,000 or less, provided that no Event of Default has occurred and is continuing, the Lenders shall deliver any such proceeds received by it to the Borrower. In the event any Lender receives insurance proceeds not attributable to Collateral, such Lender shall deliver any such proceeds to the Borrower. 7.4.2 The Borrower and each Guarantor shall upon reasonable request of the Required Lenders, execute such transfer orders, letters-in-lieu of transfer orders or division orders as the Required Lenders may from time to time request in respect of the Collateral to effect a transfer and delivery to the Lenders of the proceeds of production attributable to the Collateral.

Appears in 2 contracts

Samples: Credit and Guaranty Agreement (Lilis Energy, Inc.), Credit and Guaranty Agreement (Lilis Energy, Inc.)

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Maintenance of Security; Insurance; Authorization to File Financing Statements; Operating Accounts; Transfer Orders. (i) The Borrower shall execute and deliver, or cause the appropriate Person to execute and deliver, to the Lenders Lender all mortgages, deeds of trust, security agreements, financing statements, assignments and such other documents and instruments (including division and transfer orders), and supplements and amendments thereto, and take such other actions as the Required Lenders deem reasonably Lender deems necessary or desirable in order to (a) grant and maintain as valid, enforceable, first-priority, perfected Liens (subject only to the Permitted Liens), all Liens granted to secure the Obligations or (b) monitor or control the proceeds from the Collateral. (ii) The Borrower and each Guarantor which has granted a security interest to the LendersLender, as applicable, authorizes the Lenders Lender to complete and file, from time to time, financing statements naming the Borrower and each such Guarantor, as applicable, as debtor to perfect Liens granted to secure the Obligations. (iii) The Borrower shall take such action as may be requested from time to time by the Required Lenders Lender to maintain, or cause to be in effect at all times, first and prior Liens (subject to Permitted Liens) in favor of the Lenders Lender by instruments executed by the appropriate Person and properly recorded in the applicable jurisdictions on Oil and Gas Properties having an aggregate PV-10 Value of at least eighty percent (80%) utilized in the most recent determination of the PV-10 Value Borrowing Base representing no less than the Reserve Report Value. Without limiting the generality of all such the foregoing, if the Lender determines from time to time that the Oil and Gas PropertiesProperties encumbered by the Mortgages do not represent at least the Reserve Report Value and the Lender requests additional Mortgages to cure such shortfall, then not later than 10 Business Days following each such request, the Borrower shall furnish such legal descriptions thereto and execute and deliver, or cause the appropriate Person to execute and deliver, such supplemental Mortgages as the Lender may request to cure such shortfall. (iv) The Borrower shall, and shall cause each Guarantor that owns any Oil and Gas Properties to, maintain insurance with financially sound and reputable insurance companies in such amounts and covering such risks as is customarily carried in conformity with prudent industry practice by companies in the oil and gas industry owning similar properties in the same general areas in which Borrower and the other Loan Parties operate, provided that in any event the Borrower will maintain and cause the relevant Guarantors to maintain workmen's compensation insurance, property insurance and comprehensive general liability insurance reasonably satisfactory to the Lender. Each insurance policy covering Collateral shall name the Lender as loss payee and each Guarantor insurance policy covering liabilities shall name the Lender as additional insured, and each such insurance policy shall provide that such policy will not be cancelled or reduced without 30 days prior written notice to the Lender. 7.4.2. The Borrower will maintain its primary operating accounts with Bank7, and will deposit all revenues and proceeds from Hedging Transactions of the Borrower in such accounts. Further, Borrower shall at all times maintain or cause to be maintained hazard and liability insurance and additional insurance covering no less than $5,000,000 in such risks as are customarily carried by businesses similarly situatedaccounts. For the avoidance of doubt, all such insurance to be in amounts and from insurers reasonably acceptable to for purposes of calculating the Required Lenders, maintained by Borrower, naming the Lenders as loss payee or as an additional insured, as applicable, and, upon any renewal amount of any such insurance and at other times upon request by the Required Lenders, promptly furnish to the Lenders evidence, reasonably satisfactory to the Required Lenders, of the maintenance of such insurance. The Lenders shall have the right to collect, and cash the Borrower hereby assigns is maintaining with Lender, Borrower shall not receive credit for any restricted cash or cash in accounts subject to the Lendersa deposit account control agreement. Notwithstanding same, any and all monies that may become payable under any policies of insurance by reason of damage, loss, or destruction of any of the Collateral. In in the event of any damage, loss, or destruction for which insurance proceeds relating to business interruption, if any, or Collateral exceeds $500,000, the Required Lenders may, at their option, apply all such sums or any part thereof received by it toward the payment a Borrowing Base Surplus then Borrower shall receive a dollar-for-dollar reduction of the Obligations, whether matured or unmatured, application to be made first to interest and then to principal, and shall deliver to the Borrower the balance, if any, after such application has been made. In the event of any such damage, loss, or destruction for which insurance proceeds are $500,000 or less, provided that no Event of Default has occurred and is continuing, the Lenders shall deliver any such proceeds received by it to the Borrower. In the event any Lender receives insurance proceeds not attributable to Collateral, such Lender shall deliver any such proceeds to the Borrowerits deposit requirements under this Section 7.4.2. 7.4.2 The Borrower and each Guarantor 7.4.3. Each Loan Party shall upon reasonable request of the Required LendersLender, execute such transfer orders, letters-in-lieu of transfer orders or division orders as the Required Lenders Lender may from time to time request in respect of the Collateral to effect a transfer and delivery to the Lenders Lender of the proceeds of production attributable to the Collateral.

Appears in 2 contracts

Samples: Credit Agreement (Alpine Summit Energy Partners, Inc.), Credit Agreement (Alpine Summit Energy Partners, Inc.)

Maintenance of Security; Insurance; Authorization to File Financing Statements; Operating Accounts; Transfer Orders. (i) The Borrower shall execute and deliver, or cause the appropriate Person to execute and deliver, to the Lenders Administrative Agent all mortgages, deeds of trust, security agreements, financing statements, assignments and such other documents and instruments (including division and transfer orders), and supplements and amendments thereto, and take such other actions as the Required Lenders deem reasonably Administrative Agent deems necessary or desirable in order to (a) grant and maintain as valid, enforceable, first-priority, perfected Liens (subject only to the Permitted Liens), all Liens granted to secure the Obligations or (b) monitor or control the proceeds from the Collateral. (ii) The Borrower and each Guarantor which has granted a security interest to the Lenders, as applicable, in connection herewith authorizes the Lenders Administrative Agent to complete and file, from time to time, financing statements naming the Borrower and each such Guarantor, as applicable, as debtor to perfect Liens granted to secure the Obligations. (iii) The Borrower shall take such action as may be requested from time to time by the Required Lenders Administrative Agent to maintain, or cause to be in effect at all times, first and prior Liens (subject to Permitted Liens) in favor of the Lenders Administrative Agent by instruments executed by the appropriate Person and properly recorded in the applicable jurisdictions on at least 80% by PW9 Value of the Oil and Gas Properties having an aggregate PV-10 Value of at least eighty percent (80%) included in the most recent determination of the PV-10 Value of all such Oil and Gas PropertiesBorrowing Base. (iv) The Borrower and each Guarantor will at all times maintain or cause to be maintained hazard and liability insurance and additional insurance covering such risks as are customarily carried by businesses similarly situated, all such insurance to be in amounts and from insurers reasonably acceptable to the Required LendersAdministrative Agent, maintained by Borrower, naming the Administrative Agent for the benefit of the Lenders as loss payee or as an additional insured, as applicablepayee, and, upon any renewal of any such insurance and at other times upon request by the Required LendersAdministrative Agent, promptly furnish to the Lenders Administrative Agent evidence, reasonably satisfactory to the Required LendersAdministrative Agent, of the maintenance of such insurance. 7.4.2. The Lenders shall have Borrower will maintain its primary operating accounts with the right to collectTexas Capital Bank, N.A., and will deposit the Borrower hereby assigns to substantial majority of its revenues in such accounts, although such requirement shall not be construed as requiring the Lenders, any and all monies that may become payable under any policies maintenance of insurance by reason of damage, loss, or destruction of any of the Collateral. In the event of any damage, loss, or destruction for which insurance proceeds relating to business interruption, if any, or Collateral exceeds $500,000, the Required Lenders may, at their option, apply all such sums or any part thereof received by it toward the payment of the Obligations, whether matured or unmatured, application to be made first to interest and then to principal, and shall deliver to the Borrower the balance, if any, after such application has been made. In the event of any such damage, loss, or destruction for which insurance proceeds are $500,000 or less, provided that no Event of Default has occurred and is continuing, the Lenders shall deliver any such proceeds received by it to the Borrower. In the event any Lender receives insurance proceeds not attributable to Collateral, such Lender shall deliver any such proceeds to the Borrowerdeposit balances. 7.4.2 7.4.3. The Borrower and each Guarantor which has granted a Lien on Oil and Gas Properties in connection herewith shall upon reasonable request of the Required LendersAdministrative Agent, execute such transfer orders, letters-in-lieu of transfer orders or division orders as the Required Lenders Administrative Agent may from time to time request in respect of the Collateral to effect a transfer and delivery to the Administrative Agent for the benefit of the Lenders of the proceeds of production attributable to the Collateral; provided, however, that so long as no Default exists, the Borrower shall be entitled to receive such proceeds.

Appears in 1 contract

Samples: Credit Agreement (Lynden Energy Corp.)

Maintenance of Security; Insurance; Authorization to File Financing Statements; Operating Accounts; Transfer Orders. (i) The Borrower shall execute and deliver, or cause the appropriate Person to execute and deliver, to the Lenders all mortgages, deeds of trust, security agreements, financing statements, assignments and such other documents and instruments (including division and transfer orders), and supplements and amendments thereto, and take such other actions as the Required Lenders deem reasonably necessary or desirable and request in order to (a) grant and maintain as valid, enforceable, first-priority, perfected Liens (subject only to the Permitted Liens), all Liens granted to secure the Obligations or (b) monitor or control the proceeds from Collateral. (ii) The Borrower and each Guarantor which has granted a security interest to the Lenders, as applicable, authorizes the Lenders to complete and file, from time to time, financing statements naming the Borrower and each such Guarantor, as applicable, as debtor to perfect Liens granted to secure the Obligations. (iii) The Borrower shall take such action as may be requested from time to time by the Required Lenders to maintain, or cause to be in effect at all times, maintain first and prior Liens (subject to Permitted Liens) in favor of the Lenders by instruments executed by the appropriate Person and properly recorded in the applicable jurisdictions on Oil and Gas Properties having an aggregate PV-10 PV-9 Value of at least eighty percent (80%) of the PV-10 PV-9 Value of all such Oil and Gas Properties. (iv) The Borrower and each Guarantor will at all times maintain or cause to be maintained hazard and liability insurance and additional insurance covering such risks as are customarily carried by businesses similarly situated, all such insurance to be in amounts and from insurers reasonably acceptable to the Required Lenders, maintained by Borrower, naming the Lenders as loss payee or as an additional insured, as applicable, to provide that such policies may not be cancelled, reduced or affected in any manner for any reason without thirty (30) days’ prior notice to the Administrative Agent, and, upon any renewal of any such insurance and at other times upon request by the Required Lenders, promptly furnish to the Lenders evidence, reasonably satisfactory to the Required Lenders, of the maintenance of such insurance. The Lenders shall have the right to collect, and the Borrower hereby assigns to the Lenders, any and all monies that may become payable under any policies of insurance by reason of damage, loss, or destruction of any of the Collateral. In the event of any damage, loss, or destruction for which insurance proceeds relating to business interruption, if any, or Collateral exceeds $500,000, the Required Lenders may, at their option, apply all such sums or any part thereof received by it toward the payment of the Obligations, whether matured or unmatured, application to be made first to interest and then to principal, and shall deliver to the Borrower the balance, if any, after such application has been made. In the event of any such damage, loss, or destruction for which insurance proceeds are $500,000 or less, provided that no Event of Default has occurred and is continuing, the Lenders shall deliver any such proceeds received by it to the Borrower. In the event any Lender receives insurance proceeds not attributable to Collateral, such Lender shall deliver any such proceeds to the Borrower. 7.4.2 7.4.2. The Borrower and each Guarantor shall upon reasonable request of the Required Lenders, execute such transfer orders, letters-in-lieu of transfer orders or division orders as the Required Lenders or the Bridge Required Lenders may from time to time request in respect of the Collateral to effect a transfer and delivery to the Lenders of the proceeds of production attributable to the CollateralCollateral at any time following and during the continuation of an Event of Default.

Appears in 1 contract

Samples: Credit and Guaranty Agreement (Lilis Energy, Inc.)

Maintenance of Security; Insurance; Authorization to File Financing Statements; Operating Accounts; Transfer Orders. (i) The Borrower shall execute and deliver, or cause the appropriate Person to execute and deliver, to the Lenders Lender all mortgages, deeds of trust, security agreements, financing statements, assignments and such other documents and instruments (including division and transfer orders), and supplements and amendments thereto, and take such other actions as the Required Lenders deem reasonably Lender deems necessary or desirable in order to (a) grant and maintain as valid, enforceable, first-priority, perfected Liens (subject only to the Permitted Liens), all Liens granted to secure the Obligations or (b) monitor or control the proceeds from the Collateral. (ii) The Borrower and each Guarantor which has granted a security interest to the Lenders, as applicable, in connection herewith authorizes the Lenders Lender to complete and file, from time to time, financing statements naming the Borrower and each such Guarantor, as applicable, as debtor to perfect Liens granted to secure the Obligations. (iii) The Borrower shall take such action as may be requested from time to time by the Required Lenders Lender to maintain, or cause to be in effect at all times, first and prior Liens (subject to Permitted Liens) in favor of the Lenders Lender by instruments executed by the appropriate Person and properly recorded in the applicable jurisdictions on at least 90% by PW9 Value of the Oil and Gas Properties having an aggregate PV-10 Value of at least eighty percent (80%) included in the most recent determination of the PV-10 Value of all such Oil and Gas PropertiesBorrowing Base. (iv) The Borrower and each Guarantor will at all times maintain or cause to be maintained hazard and liability insurance and additional insurance covering such risks as are customarily carried by businesses similarly situated, all such insurance to be in amounts and from insurers reasonably acceptable to the Required LendersLender, maintained by BorrowerBorrower or Guarantor, as applicable, naming the Lenders Lender as loss payee or as an additional insured, as applicablepayee, and, upon any renewal of any such insurance and at other times upon request by the Required LendersLender, promptly furnish to the Lenders Lender evidence, reasonably satisfactory to the Required LendersLender, of the maintenance of such insurance. The Lenders Lender shall have the right to collect, and the Borrower and each Guarantor hereby assigns to the Lenders, Lender any and all monies that may become payable under any policies of insurance relating to business interruption, if any, or by reason of damage, loss, or destruction of any of the Collateral. In the event of any damage, loss, or destruction for which insurance proceeds relating to business interruption, if any, or Collateral exceeds exceed $500,000100,000, the Required Lenders Lender may, at their its option, apply all such sums or any part thereof received by it toward the payment of the Obligations, whether matured or unmatured, application to be made first to interest and then to principal, and shall deliver to the Borrower or the Guarantor, as applicable, the balance, if any, after such application has been made. In the event of any such damage, loss, or destruction for which insurance proceeds are $500,000 100,000 or less, provided that no Event of Default has occurred and is continuing, the Lenders Lender shall deliver any such proceeds received by it to the Borrower. In Borrower or the event any Lender receives insurance proceeds not attributable to CollateralGuarantor, such Lender shall deliver any such proceeds to the Borroweras applicable. 7.4.2 7.4.2. The Borrower and each Guarantor will maintain its primary operating accounts with Texas Capital Bank, N.A., and will deposit all revenues of the Borrower and each such Guarantor in such accounts, although such requirement shall not be construed as requiring the maintenance of deposit balances. 7.4.3. The Borrower and each Guarantor which has granted a Lien on Oil and Gas Properties in connection herewith shall upon reasonable request of the Required LendersLender, execute such transfer orders, letters-in-lieu of transfer orders or division orders as the Required Lenders Lender may from time to time request in respect of the Collateral to effect a transfer and delivery to the Lenders Lender of the proceeds of production attributable to the Collateral.

Appears in 1 contract

Samples: Credit Agreement (Reef Oil & Gas Income & Development Fund III LP)

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Maintenance of Security; Insurance; Authorization to File Financing Statements; Operating Accounts; Transfer Orders. (i) The Borrower shall execute and deliver, or cause the appropriate Person to execute and deliver, to the Lenders Lender all mortgages, deeds of trust, security agreements, financing statements, assignments and such other documents and instruments (including division and transfer orders), and supplements and amendments thereto, and take such other actions as the Required Lenders deem reasonably Lender deems necessary or desirable in order to (a) grant and maintain as valid, enforceable, first-priority, perfected Liens (subject only to the Permitted Liens), all Liens granted to secure the Obligations or (b) monitor or control the proceeds from the Collateral. (ii) The Borrower and each Guarantor which has granted a security interest to the Lenders, as applicable, in connection herewith authorizes the Lenders Lender to complete and file, from time to time, financing statements naming the Borrower and each such Guarantor, as applicable, as debtor to perfect Liens granted to secure the Obligations. (iii) The Borrower shall take such action as may be requested from time to time by the Required Lenders Lender to maintain, or cause to be in effect at all times, first and prior Liens (subject to Permitted Liens) in favor of the Lenders Lender by instruments executed by the appropriate Person and properly recorded in the applicable jurisdictions on at least 90% by PW9 Value of the Oil and Gas Properties having an aggregate PV-10 Value of at least eighty percent (80%) included in the most recent determination of the PV-10 Value of all such Oil and Gas PropertiesBorrowing Base. (iv) The Borrower and each Guarantor will at all times maintain or cause to be maintained hazard and liability insurance and additional insurance covering such risks as are customarily carried by businesses similarly situated, all such insurance to be in amounts and from insurers reasonably acceptable to the Required LendersLender, maintained by BorrowerBorrower or Guarantor, as applicable, naming the Lenders Lender as loss payee or as an additional insured, as applicablepayee, and, upon any renewal of any such insurance and at other times upon request by the Required LendersLender, promptly furnish to the Lenders Lender evidence, reasonably satisfactory to the Required LendersLender, of the maintenance of such insurance. The Lenders Lender shall have the right to collect, and the Borrower and each Guarantor hereby assigns to the Lenders, Lender any and all monies that may become payable under any policies of insurance relating to business interruption, if any, or by reason of damage, loss, or destruction of any of the Collateral. In the event of any damage, loss, or destruction for which insurance proceeds relating to business interruption, if any, or Collateral exceeds exceed $500,000100,000, the Required Lenders Lender may, at their its option, apply all such sums or any part thereof received by it toward the payment of the Obligations, whether matured or unmatured, application to be made first to interest and then to principal, and shall deliver to the Borrower or the Guarantor, as applicable, the balance, if any, after such application has been made. In the event of any such damage, loss, or destruction for which insurance proceeds are $500,000 100,000 or less, provided that no Event of Default has occurred and is continuing, the Lenders Lender shall deliver any such proceeds received by it to the Borrower. In Borrower or the event any Lender receives insurance proceeds not attributable to CollateralGuarantor, such Lender shall deliver any such proceeds to the Borroweras applicable. 7.4.2 7.4.2. The Borrower and each Guarantor will maintain its primary operating accounts with Texas Capital Bank, N.A., and will deposit on a monthly basis all net revenues of the Borrower and each such Guarantor in such accounts, although such requirement shall not be construed as requiring the maintenance of deposit balances. 7.4.3. Within 30 days following the Closing, the Borrower shall cause each limited partnership of which Reef Partners is the general partner to establish and maintain their primary operating accounts at Texas Capital Bank, N.A. 7.4.4. The Borrower and each Guarantor which has granted a Lien on Oil and Gas Properties in connection herewith shall upon reasonable request of the Required LendersLender, execute such transfer orders, letters-in-lieu of transfer orders or division orders as the Required Lenders Lender may from time to time request in respect of the Collateral to effect a transfer and delivery to the Lenders Lender of the proceeds of production attributable to the Collateral.

Appears in 1 contract

Samples: Credit Agreement (Reef Oil & Gas Drilling & Income Fund, L.P.)

Maintenance of Security; Insurance; Authorization to File Financing Statements; Operating Accounts; Transfer Orders. (i) The Borrower shall execute and deliver, or cause the appropriate Person to execute and deliver, to the Lenders Lender all mortgages, deeds of trust, security agreements, financing statements, assignments and such other documents and instruments (including division and transfer orders), and supplements and amendments thereto, and take such other actions as the Required Lenders deem reasonably Lender deems necessary or desirable in order to (a) grant and maintain as valid, enforceable, first-priority, perfected Liens (subject only to the Permitted Liens), all Liens granted to secure the Obligations or (b) monitor or control the proceeds from Collateral. (ii) The Borrower and each Guarantor which has granted a security interest to the LendersLender, as applicable, authorizes the Lenders Lender to complete and file, from time to time, financing statements naming the Borrower and each such Guarantor, as applicable, as debtor to perfect Liens granted to secure the Obligations. (iii) The Borrower shall take such action as may be requested from time to time by the Required Lenders Lender to maintain, or cause to be in effect at all times, first and prior Liens (subject to Permitted Liens) in favor of the Lenders Lender by instruments executed by the appropriate Person and properly recorded in the applicable jurisdictions on Oil and Gas Properties utilized in the most recent determination of the Borrowing Base having an aggregate PV-10 PW Value of at least eighty percent (80%) % of the PV-10 PW Value of all such Oil and Gas Properties. (iv) The Borrower and each Entity Guarantor will at all times maintain or cause to be maintained hazard and liability insurance and additional insurance covering such risks as are customarily carried by businesses similarly situated, all such insurance to be in amounts and from insurers reasonably acceptable to the Required LendersLender, maintained by Borrower, naming the Lenders Lender as loss payee or as an additional insured, as applicable, and, upon any renewal of any such insurance and at other times upon request by the Required LendersLender, promptly furnish to the Lenders Lender evidence, reasonably satisfactory to the Required LendersLender, of the maintenance of such insurance. The Lenders Lender shall have the right to collect, and the Borrower hereby assigns to the LendersLender, any and all monies that may become payable under any policies of insurance relating to business interruption, if any, or by reason of damage, loss, or destruction of any of the Collateral. In the event of any damage, loss, or destruction for which insurance proceeds relating to business interruption, if any, or Collateral exceeds exceed $500,000100,000, the Required Lenders Lender may, at their its option, apply all such sums or any part thereof received by it toward the payment of the Obligations, whether matured or unmatured, application to be made first to interest and then to principal, and shall deliver to the Borrower the balance, if any, after such application has been made. In the event of any such damage, loss, or destruction for which insurance proceeds are $500,000 100,000 or less, provided that no Event of Default has occurred and is continuing, the Lenders Lender shall deliver any such proceeds received by it to the Borrower. In the event any the Lender receives insurance proceeds not attributable to CollateralCollateral or business interruption, such the Lender shall deliver any such proceeds to the Borrower. 7.4.2 7.4.2. The Borrower and each Entity Guarantor will maintain its primary operating accounts with Independent Bank, and will deposit all revenues of the Borrower and each such Entity Guarantor in such accounts although such requirement shall not be construed as requiring the maintenance of deposit balances. 7.4.3. The Borrower and each Guarantor shall upon reasonable request of the Required LendersLender, execute such transfer orders, letters-in-lieu of transfer orders or division orders as the Required Lenders Lender may from time to time request in respect of the Collateral to effect a transfer and delivery to the Lenders Lender of the proceeds of production attributable to the Collateral.

Appears in 1 contract

Samples: Credit Agreement (Starboard Resources, Inc.)

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