Common use of Notification of Obligors Clause in Contracts

Notification of Obligors. At any time, after occurrence and the continuance of an Event of Default by the Debtor, the Bank may notify the obligors on any of the Collateral of the existence of its security interest and direct them to make payments directly to the Bank. The Debtor, at the request of the Bank, shall also take such actions and hold any sums received from such obligors in trust for the Bank. Until such time as the Bank elects to exercise such rights, the Debtor is authorized, as agent of the Bank, to collect and enforce those obligations.

Notification of Obligors. At any time, prior to or after occurrence and the continuance of an Event of Default default by the Debtor, the Bank may notify the obligors on any of the Collateral of the existence of its security interest and direct them to make payments directly to the Bank. The Debtor, at the request of the Bank, shall also take such actions and hold any sums received from such obligors in trust for the Bank. Until such time as the Bank elects to exercise such rights, the Debtor is authorized, as agent of the Bank, to collect and enforce those obligations.