Common use of Notification to Account Debtors and Other Obligors Clause in Contracts

Notification to Account Debtors and Other Obligors. If an Event of Default shall have occurred and be continuing, the Company shall, at the request of the Bank, notify account debtors on accounts, chattel paper and general intangibles of the Company and obligors on instruments for which the Company is an obligee of the security interest of the Bank in any account, chattel paper, general intangible or instrument and that payment thereof is to be made directly to the Bank or to any financial institution designated by the Bank as the Bank's agent therefor, and the Bank may itself, if an Event of Default shall have occurred and be continuing, without notice to or demand upon the Company, so notify account debtors and obligors. After the making of such a request or the giving of any such notification, the Company shall hold any proceeds of collection of accounts, chattel paper, general intangibles and instruments received by the Company as trustee for the Bank without commingling the same with other funds of the Company and shall turn the same over to the Bank in the identical form received, together with any necessary endorsements or assignments. The Bank shall apply the proceeds of collection of accounts, chattel paper, general intangibles and instruments received by the Bank to the Obligations, such proceeds to be immediately entered after final payment in cash or solvent credits of the items giving rise to them.

Notification to Account Debtors and Other Obligors. If an Event of Default shall have occurred and be continuing, the each Company shall, at the request of the BankAgent, notify account debtors on accounts, chattel paper and general intangibles of the such Company pledged by it hereunder and obligors on instruments pledged by it hereunder for which the such Company is an obligee of the security interest of the Bank Agent in any account, chattel paper, general intangible or instrument and that payment thereof is to be made directly to the Bank Agent or to any financial institution designated by the Bank Agent as the BankAgent's agent therefortherefor (except to the extent that such payment is already being made to the Agent to the satisfaction of the Agent), and the Bank Agent may itself, if an Event of Default shall have occurred and be continuing, without notice to or demand upon the any Company, so notify such account debtors and obligors. After the making of such a request or the giving of any such notification, the each Company shall hold any proceeds of collection received by such Company of accounts, chattel paper, general intangibles and instruments received pledged by the Company it hereunder as trustee for the Bank Agent, for the benefit of the Banks and the Agent, without commingling the same with other funds of the any Company and shall turn the same over to the Bank Agent in the identical form received, together with any necessary endorsements or assignments. The Bank Agent shall apply the proceeds of collection received by the Agent of accounts, chattel paper, general intangibles and instruments received pledged by the Bank a Company to the ObligationsObligations in accordance with the Credit Agreement, such proceeds to be immediately entered after final payment in cash or solvent credits of the items giving rise to them.