Common use of Cash Proceeds Clause in Contracts

Cash Proceeds. In addition to the rights of the Collateral Agent specified in Section 3.3 with respect to payments of Receivables, if directed by the Collateral Agent acting at the direction of (i) the Applicable Representative upon the occurrence and during the continuance of an Acceleration Default or (ii) Majority Creditors upon the occurrence and during the continuance of an Actionable Default, all proceeds of any Collateral received by any Grantor consisting of cash, checks and other near-cash items shall be held by such Grantor in trust for the Collateral Agent, segregated from other funds of such Grantor, and shall, forthwith upon receipt by such Grantor, be turned over to the Collateral Agent in the exact form received by such Grantor (duly indorsed by such Grantor to the Collateral Agent, if required) for application to the Obligations.