Common use of Notice to Account Debtors and Contracting Parties Clause in Contracts

Notice to Account Debtors and Contracting Parties. At any time after the occurrence and during the continuance of an Event of Default, the Administrative Agent shall have the right at any time, upon written notice to the Borrower of its intention to do so, to notify account debtors or obligors on the Accounts and parties to the Contracts that the Accounts and the Contracts have been assigned to the Administrative Agent for the ratable benefit of the Lenders and that payments due or to become due to the Borrower in respect thereof shall be made directly to the Administrative Agent and, upon such notification, and at the expense of the Borrower, to enforce collection of any such Accounts. The Administrative Agent may, at any time, in its own name or in the name of the Lenders or the Borrower communicate with account debtors on the Accounts and parties to the Contracts to verify with them to its satisfaction the existence, amount and terms of any Accounts or Contracts. Unless an Event of Default shall have occurred and be continuing, the Administrative Agent shall not exercise its right under this clause (b) more than once in any 12-month period.

Notice to Account Debtors and Contracting Parties. At any time after the occurrence and during the continuance of an Event of Default, the Administrative Agent shall have the right at any time, upon written notice to the Borrower Grantor of its intention to do so, to notify account debtors or obligors on the Accounts and parties to the Contracts that the Accounts and the Contracts have been assigned to the Administrative Agent for the ratable benefit of the Lenders and that payments due or to become due to the Borrower Grantor in respect thereof shall be made directly to the Administrative Agent and, upon such notification, and at the expense of the BorrowerGrantor, to enforce collection of any such Accounts. The Administrative Agent may, at any time, in its own name or in the name of the Lenders or the Borrower Grantor communicate with account debtors on the Accounts and parties to the Contracts to verify with them to its satisfaction the existence, amount and terms of any Accounts or Contracts. Unless an Event of Default shall have occurred and be continuing, the Administrative Agent shall not exercise its right under this clause (b) more than once in any 12-month period.