Processing, Sale, Collections, Etc. (a) The Borrower will use Equipment constituting Collateral solely in the conduct of the Borrower’s business, will keep all tangible Collateral in good order and repair, wear and tear excepted, and will not waste or destroy any part of the Collateral nor use any of the Collateral in material violation of any statute or ordinance.
(b) Until notice from the Secured Party to the contrary given at any time after the occurrence and during the continuance of any Event of Default, the Borrower (i) may, in the ordinary course of its business, at its own expense, sell, lease, or furnish under contracts of service any of the Inventory (but no such sale or use shall limit or impair the Security Interest in any proceeds thereof); (ii) will, at its own expense, endeavor to collect, when due, all amounts due with respect to any of the Intangible Collateral, and take such action with respect to such collection as the Secured Party may reasonably request or, in the absence of such request, as the Borrower may deem advisable; and (iii) may grant in the ordinary course of business, to any person obligated on any of the Intangible Collateral, any rebate, refund, or allowance to which such person may be lawfully entitled, and accept, in connection therewith, the return of goods, the sale or lease of which shall have given rise to such Intangible Collateral.
(c) Except as permitted by Section 4.3(b) or 4.3(d), the Secured Party does not authorize the Borrower to, and the Borrower will not sell, lease, assign, license, transfer, or otherwise dispose of or in any manner alter, modify, manufacture, process, or assemble the Collateral or any part thereof.
(d) Any Equipment constituting Collateral which is worn out, destroyed, or damaged beyond repair may be disposed of but will promptly be replaced by new Equipment, free of any Lien except for Permitted Liens, which has a value or utility at least equal as of the date of replacement to the value or utility of the replaced Equipment as of the date hereof.
(e) So long as the Borrower holds any proceeds of the Collateral, the Borrower will hold same separate and apart from any other property of the Borrower and in trust for the Secured Party and shall not commingle the proceeds of Collateral with any of the Borrower’s funds or property. Except as otherwise provided under the covenants and agreements relating to Collateral in this Security Agreement or elsewhere herein, unless an Event of Default has occurred, the Borrower shall be en...
Processing, Sale, Collections, Etc. Until the occurrence of an Event of Default and thereafter until such time as Lender shall notify Borrower of the revocation of such power and authority, Borrower (i) may, in the ordinary course of its business, at its own expense, sell, lease or furnish under contracts of service any of the Inventory normally held by Borrower for such purpose, and use and consume, in the ordinary course of its business, any raw materials, work in process or materials normally held by Borrower for such purpose, (ii) may, subject to the provisions of SUBSECTION 3.4, at its own expense, endeavor to collect, as and when due, all amounts due with respect to any of the nontangible Collateral, including the taking of such action with respect to such collection as Lender may reasonably request or, in the absence of such request, as Borrower may deem advisable, and (iii) may grant, subject to SUBSECTION 5.5, in the ordinary course of business, to any party obligated on any of the nontangible Collateral, any rebate, refund or allowance to which such Person may be lawfully entitled, and may accept, in connection therewith, the return of Goods, the sale or lease of which shall have given rise to such nontangible Collateral.
Processing, Sale, Collections, Etc. (a) Debtor will, at its own expense, endeavor to collect, when due, all amounts due with respect to any of the Collateral, and take such action with respect to such collection as Secured Party may reasonably request or, in the absence of such request, as Debtor may deem advisable.
(b) Except for the collection of accounts receivable, or as permitted by this Section 4.2(b) or under the Note, Secured Party does not authorize Debtor to, and Debtor will not, sell, lease, assign, license or transfer the Collateral or any part thereof (other than proceeds of permitted dispositions) except upon obtaining the prior written consent of Secured Party, which will not be unreasonably withheld.
Processing, Sale, Collections, Etc. (a) Until notice from Secured Party to the contrary, given at any time after the occurrence and during the continuance of any Event of Default, Debtor (i) will, at its own expense, endeavor to collect, when due, all amounts due with respect to any of the Intangible Collateral, and take such action with respect to such collection as Secured Party may reasonably request or, in the absence of such request, as Debtor may deem advisable; and (ii) may grant in the ordinary course of business, to any person obligated on any of the Intangible Collateral, any rebate, refund, or allowance to which such person may be lawfully entitled, and accept, in connection therewith, the return of goods, the sale or lease of which shall have given rise to such Intangible Collateral.
(b) So long as Debtor holds any proceeds of the Collateral after the occurrence and during the continuance of an Event of Default, Debtor will hold same separate and apart from any other property of Debtor and in trust for Secured Party and shall not commingle the proceeds of Collateral with any of Debtor’s funds or property.
Processing, Sale, Collections, Etc. (a) Debtor will not waste or destroy any part of the Collateral nor use any of the Collateral in violation of any statute or ordinance.
(b) Except as permitted by Section 4.3(c), Debtor will not sell, lease, assign, license, transfer, or otherwise dispose of or in any manner alter, modify, manufacture, process, or assemble the Collateral or any part thereof, other than in the ordinary course of business. If Debtor with or without the consent of Secured Party disposes of any of the Collateral other than in the ordinary course of business, Debtor will notify Secured Party of such disposition.
(c) If upon the occurrence of an Event of Default (as defined herein), Debtor holds any proceeds of the Collateral, Debtor will hold same separate and apart from any other property of Debtor and in trust for Secured Party and shall not commingle the proceeds of Collateral with any of Debtor's funds or property.
Processing, Sale, Collections, Etc. Until such time as Agent shall notify Grantors to the contrary, Grantors (i) will, at their own expense, endeavor to collect, as and when due, all amounts due with respect to any of the Collateral, including the taking of any action with respect to collection as Agent may reasonably request or, in the absence of a request, as Grantors may deem advisable, and (ii) may grant, in the ordinary course of business, to any party obligated on any of the Collateral, any rebate, refund or allowance to which the party may be lawfully entitled. Agent, during the continuance of an Event of Default, subject to any rights of PREFSA as Lender under the PREFSA Loan Agreement, may notify any parties obligated on any of the Collateral to make payment to the Purchasers or to a bank account designated by Agent of any amounts due or to become due thereunder and enforce collection of any of the Collateral by suit or otherwise and surrender, release or exchange all or part thereof, or compromise or extend or renew for any period (whether or not longer than the original period) any indebtedness thereunder or evidenced thereby. At Agent's request during the continuance of an Event of Default, subject to any rights of PREFSA as Lender under the PREFSA Loan Agreement, Grantors will, at their own expense, (a) notify any parties obligated on any of the Collateral to make payment to Agent or to a bank account designated by Agent of any amounts due or to become due thereunder and (b) cause all instruments and Chattel Paper, upon receipt by any Grantor, to be immediately endorsed to and deposited with Agent.
