Automatic Sweep; Payments Sample Clauses
The "Automatic Sweep; Payments" clause establishes a mechanism by which funds are automatically transferred from one account to another to satisfy payment obligations under an agreement. Typically, this clause authorizes the creditor or service provider to initiate electronic transfers from the debtor’s designated account on specified dates or upon the occurrence of certain events, ensuring timely payment of amounts due. By automating the payment process, this clause minimizes the risk of missed or late payments and streamlines the settlement of financial obligations between parties.
Automatic Sweep; Payments. Within thirty (30) days following the date of this Agreement, the Borrower shall establish and maintain all of its primary deposit accounts with the Bank and shall establish a cash management relationship with the Bank such that all payments and Collateral proceeds shall be swept to the Revolving Loan on a daily basis. All items presented for payment in Borrower’s primary operating account with the Bank, to the extent that proceeds in such account are insufficient to honor such payment, shall be deemed to be requests by the Borrower for advances under the Revolving Loan and, subject to availability under the Borrowing Base, the Bank shall make advances under the Revolving Loan into the Borrower’s operating account in the amount necessary to fund such items. Immediately, upon the receipt of all checks, drafts, cash and other remittances in payment of any Inventory sold or in payment or on account of the Borrower’s accounts, contracts, contract rights, notes, bills, drafts, acceptances, general intangibles, choses in action and all other forms of obligations, the Borrower will deliver same to the Bank accompanied by a remittance report in form specified by the Bank. Said proceeds shall be delivered to the Bank in the same form received, except for the endorsement of the Borrower where necessary to permit collection of the items, which endorsement the Borrower agrees to make. The Bank will credit (conditioned upon final collection) all such payments against the principal or interest due under the Revolving Loan. For the purpose of computing interest with respect to advances under the Revolving Loan and determining the unused Revolving Loan Commitment in calculation of the Unused Fee, the Borrower shall receive immediate credit for payments received by wire transfer, but any items requiring clearance or payment shall not be considered to have been credited against any advances under the Revolving Loan until two (2) Business Days after receipt by the Bank of any such items. The order and method of application shall be in the sole discretion of the Bank and any portion of such funds which the Bank elects not to apply shall be paid over from time to time by the Bank to the Borrower. The Bank will at all times have the right to require the Borrower to (i) enter into a lockbox arrangement with the Bank for the collection of such remittances and payments, or (ii) maintain its primary deposit accounts at the Bank, or, in the alternative, at another financial institut...