Common use of Assignment of Deposit Account Agreement Clause in Contracts

Assignment of Deposit Account Agreement. Borrower has heretofore opened and is presently maintaining with Lender the Borrower’s Primary Operating Account. Prior to or concurrently with the execution of this Agreement, Borrower shall execute and deliver to Lender the Assignment of Deposit Account Agreement, which shall assign Borrower’s Primary Operating Account to Lender as security for the Obligations. Borrower shall deposit or cause to be deposited into Borrower’s Primary Operating Account, all sums collected from any Account Debtors under their respective Accounts. Upon the occurrence and during the continuance of any Event of Default, (a) Borrower shall have no further right to access, utilize or withdraw all or any portion of the funds in Borrower’s Primary Operating Account, and (b) Lender may withdraw from Borrower’s Primary Operating Account to pay any amounts due and unpaid, in Lender’s sole and absolute opinion and judgment, without further authorization on the part of Borrower. Notwithstanding the existence of Borrower’s Primary Operating Account, Borrower shall be responsible to pay any sums due under the terms of this Agreement and the other Loan Documents from sources other than Borrower’s Primary Operating Account regardless of whether Borrower’s Primary Operating Account has been disbursed in its entirety or an Event of Default has occurred.

Assignment of Deposit Account Agreement. Borrower has heretofore opened and is presently maintaining with Lender the Borrower’s Primary Operating Account. Prior to or concurrently with the execution of this Agreement, Borrower shall open Borrower’s Primary Operating Account with Lender and execute and deliver to that certain Security Agreement (Assignment of Deposit Account), in favor of Lender (the “Assignment of Deposit Account Agreement”), which shall assign Borrower’s Primary Operating Account to Lender as security for the Obligations. Borrower shall deposit or cause to be deposited into Borrower’s Primary Operating Account, all sums collected from any Account Debtors under their respective Accounts. Any and all funds in Borrower’s Primary Operating Account shall be used to pay any and all sums due and unpaid to Lender under the terms of the Line of Credit in accordance with Section 3.2, above, and thereafter for Borrower’s business operations. Upon the occurrence and during the continuance of any Event of Default, (a) Borrower shall have no further right to access, utilize or withdraw all or any portion of the funds in Borrower’s Primary Operating Account, and (b) Lender may continue to withdraw from Borrower’s Primary Operating Account to pay any amounts due and unpaid, in Lender’s sole and absolute opinion and judgment, without further authorization on the part of Borrower. Notwithstanding the existence of Borrower’s Primary Operating Account, Borrower shall be responsible to pay any sums due under the terms of this Agreement and the other Loan Documents from sources other than Borrower’s Primary Operating Account regardless of whether Borrower’s Primary Operating Account has been disbursed in its entirety or an Event of Default has occurred.