Common use of Notes Receivable Clause in Contracts

Notes Receivable. Any note or other instrument (except a check or other instrument for the immediate payment of money) with respect to any Receivable accepted by Debtor without the prior written consent of Secured Party shall be excluded from the Borrowing Capacity. If Secured Party, in its reasonable judgment, consents to the acceptance of any such note or instrument, the same shall be considered as evidence of the Receivable giving rise to such note or instrument, shall be subject to the Security Interest and included in the determination of Borrowing Capacity, and shall not constitute payment of such Receivable, and Debtor shall forthwith endorse such note or instrument to the order of Secured Party and deliver the same to Secured Party, together with the Schedule listing the Receivables which it evidences. Upon collection, the proceeds of such note or instrument may be applied directly to unpaid Advances, interest, and costs and expenses as provided in Section 8.5.

Notes Receivable. Any Debtor shall not accept any note or other instrument (except a check or other instrument for the immediate payment of money) with respect to any Receivable accepted by Debtor without the prior written consent of Secured Party shall be excluded from the Borrowing CapacityParty. If Secured Party, Party in its reasonable judgment, sole discretion consents to the acceptance of any such note not or instrument, the same shall be considered as evidence of the Receivable giving rise to such note or instrument, shall be subject to the Security Interest and included in the determination of Borrowing CapacityInterest, and shall not constitute payment of such Receivable, and Debtor shall forthwith endorse indorse such note or instrument to the order of Secured Party and deliver the same to Secured Party, together with the Schedule listing the Receivables which it evidences. Upon collection, the proceeds of such note or instrument may be applied directly to unpaid Advances, interest, and costs and expenses as provided in Section 8.5.