Common use of Special Rights Regarding Accounts Receivable Clause in Contracts

Special Rights Regarding Accounts Receivable. The Company or any of its agents may, at any time and from time to time in its sole discretion and irrespective of the existence of any event of default under this Security Agreement, verify directly with the Subsidiary's account debtors the accounts pledged hereunder in any manner. The Company or any of its agents may, at any time from time to time in its sole discretion, notify the Subsidiary's account debtors of the security interest of the Company in the Collateral and/or direct such account debtors that all payments in connection with such obligations and the Collateral be made directly to the Company in the Company's name. If the Company or any of its agents shall collect such obligations directly from the Subsidiary's account debtors, the Company or any of its agents shall have the right to resolve any disputes relating to returned goods directly with the Subsidiary's account debtors in such manner and on such terms as the Company or any of its agents shall deem appropriate. The Subsidiary directs and authorizes any and all of its present and future account debtors to comply with requests for information from the Company, the Company's designees and agents and/or auditors, relating to any and all business transactions between the Subsidiary and the Subsidiary's account debtors. The Subsidiary further directs and authorizes all of its account debtors upon receiving a notice or request sent by the Company or the Company's agents or designees to pay directly to the Company any and all sums of money or proceeds now or hereafter owing by the Subsidiary's account debtors to the Subsidiary, and any such payment shall act as a discharge of any debt of such account debtor to the Subsidiary in the same manner as if such payment had been made directly to the Subsidiary. The Subsidiary agrees to take any and all action as the Company may request to assist the Company in exercising the rights described in this Section.

Special Rights Regarding Accounts Receivable. The Company or any Upon an occurrence of its agents may, at any time and from time to time in its sole discretion and irrespective of the existence of any an event of default under this Security Agreementdefault, verify directly with the Subsidiary's account debtors the accounts pledged hereunder in any manner. The Company Bank or any of its agents may, at any time from time to time in its sole discretion, notify the SubsidiaryCompany's account debtors of the security interest of the Company Bank in the Collateral and/or direct such account debtors that all payments in connection with such obligations Leases and the Collateral be made directly to the Company Bank in the CompanyBank's name. As used herein, the term "account debtors" shall include, without limitation, any customer, franchisee, or any lessee under any lease. If the Company Bank or any of its agents shall collect such obligations directly from the SubsidiaryCompany's account debtors, the Company Bank or any of its agents shall have the right to resolve any disputes relating to returned goods account receivable directly with the SubsidiaryCompany's account debtors in such manner and on such terms as the Company Bank or any of its agents shall deem appropriate. The Subsidiary Company directs and authorizes any and all of its present and future account debtors to comply with requests for information from the CompanyBank, the CompanyBank's designees and agents and/or auditors, relating to any and all business transactions between the Subsidiary Company and the SubsidiaryCompany's account debtors. The Subsidiary Company further directs and authorizes all of its account debtors upon receiving a notice or request sent by the Company Bank or the CompanyBank's agents or designees to pay directly to the Company Bank any and all sums of money or proceeds now or hereafter owing by the SubsidiaryCompany's account debtors to the SubsidiaryCompany, and any such payment shall act as a discharge of any debt of such account debtor to the Subsidiary Company in the same manner as if such payment had been made directly to the SubsidiaryCompany. The Subsidiary Company agrees to take any and all action as the Company Bank may request to assist the Company Bank in exercising the rights described in this Section. The Bank shall have the right, but not the duty to lease, operate and manage the Equipment and any accessories thereon and pay operating costs and expenses, including management fees, of every kind and nature in connection therewith, so that the Equipment shall be operational and usable for its intended purposes.

Special Rights Regarding Accounts Receivable. The Company Newco or any of its agents may, at any time and from time to time during the continuation of a Default in its sole discretion and irrespective of the existence of any event of default under this Security Agreementdiscretion, verify directly with the Subsidiary's account debtors the accounts pledged hereunder in any manner. The Company During the continuation of a Default, Newco or any of its agents may, at any time from time to time in its sole discretion, notify the Subsidiary's account debtors of the security interest of the Company Newco in the Collateral and/or direct such account debtors that all payments in connection with such obligations and the Collateral be made directly to the Company Newco in the CompanyNewco's name. If During the Company continuation of a Default, if Newco or any of its agents shall collect such obligations directly from the Subsidiary's account debtors, the Company Newco or any of its agents shall have the right to resolve any disputes relating to returned goods directly with the Subsidiary's account debtors in such manner and on such terms as the Company Newco or any of its agents shall deem appropriate. The During the continuation of a Default, the Subsidiary directs and authorizes any and all of its present and future account debtors to comply with requests for information from the CompanyNewco, the CompanyNewco's designees and agents and/or auditors, relating to any and all business transactions between the Subsidiary and the Subsidiary's account debtors. The During the continuation of a Default, the Subsidiary further directs and authorizes all of its account debtors upon receiving a notice or request sent by the Company Newco or the CompanyNewco's agents or designees to pay directly to the Company Newco any and all sums of money or proceeds now or hereafter owing by the Subsidiary's account debtors to the Subsidiary, and any such payment shall act as a discharge of any debt of such account debtor to the Subsidiary in the same manner as if such payment had been made directly to the Subsidiary. The Subsidiary agrees to take any and all action as the Company Newco may request to assist the Company Newco in exercising the rights described in this Section.