Common use of Collateral Disposition Clause in Contracts

Collateral Disposition. Until the occurrence of an Event of ---------------------- Default: (a) Debtor may have possession of the Collateral and use it in any lawful manner not inconsistent with this Agreement or with any policy of insurance thereon; (b) Debtor may sell the Inventory Collateral in the ordinary course of Debtor's business (excluding, however, transfers or dispositions on satisfaction of debt), and Debtor may use and consume raw materials or supplies, or dispose of any obsolete Inventory Collateral, the use, consumption or disposition of which is necessary in order to carry on Debtor's business in the ordinary course; and (c) Debtor will, at its own expense, collect, as and when due, all amounts due under the Accounts Collateral, including the taking of such action with respect to such collection as Bank may reasonably request or, in the absence of such request, as Debtor may deem advisable, and may grant, in the ordinary course of Debtor's business, to any party obligated on any of the Accounts Collateral, any rebate, refund or adjustment to which such party may be lawfully entitled, and may accept, in connection therewith, the lawful return of goods, the sale or lease or which shall have given rise to such Accounts Collateral. Bank may, however, at any time after and during the continuance of an Event of Default and at Debtor's expense, notify any parties obligated on any of the Accounts Collateral to make payment directly to Bank of any amounts due or to become due thereunder and enforce collection of any of the Accounts Collateral by suit or otherwise and surrender, release or exchange all or any part thereof, or compromise, extend or renew same for any period.

Collateral Disposition. Until the occurrence default hereunder or receipt of an Event of ---------------------- Defaultcontrary instructions from Bank: (a) Debtor may have possession of the Collateral and use it in any lawful manner not inconsistent with this Agreement or with any policy of insurance thereon;. (b) Debtor may sell the Inventory Collateral in the ordinary course of Debtor's business (excludingbusiness, however, transfers but not a transfer or dispositions disposition on satisfaction of debt), and Debtor may use and consume raw materials or supplies, or dispose of any obsolete Inventory Collateral, the use, use and consumption or disposition of which is necessary in order to carry on Debtor's business in the ordinary course; andbusiness. (c) Debtor will, at its own expense, collect, as and when due, all amounts due under the Accounts Collateral, including the taking of such action with respect to such collection as Bank may reasonably request or, in the absence of such request, as Debtor may deem advisable, and may grant, in the ordinary course of Debtor's business, to any party obligated on any of the Accounts Collateral, any rebate, refund or adjustment to which such party may be lawfully entitled, and may accept, in connection therewith, the lawful return of goods, the sale or lease or which shall have given rise to such Accounts Collateral. Bank may, however, at any time after and during the continuance of an Event of Default and at Debtor's expense, notify any parties obligated on any of the Accounts Collateral to make payment directly to Bank of any amounts due or to become due thereunder and enforce collection of any of the Accounts Collateral by suit or otherwise and surrender, release or exchange all or any part thereof, or compromise, extend or renew same for any period.or

Collateral Disposition. Until the occurrence of an Event of ---------------------- Defaultdefault hereunder: (a) Debtor may have possession of the Collateral and use it in any lawful manner not inconsistent with this Agreement or with any policy of insurance thereon; (b) Debtor may sell the Inventory Collateral in the ordinary course of Debtor's ’s business (excluding, however, transfers or dispositions on satisfaction of debt), and Debtor may use and consume raw materials or supplies, or dispose of any obsolete Inventory Collateral, the use, use and consumption or disposition of which is necessary in order to carry on Debtor's ’s business in the ordinary course; and (c) Debtor will, at its own expense, collect, as and when due, all amounts due under the Accounts Collateral, including the taking of such action with respect to such collection as Bank Lender may reasonably request or, in the absence of such request, as Debtor may deem advisable, and may grant, in the ordinary course of Debtor's ’s business, to any party obligated on any of the Accounts Collateral, any rebate, refund or adjustment to which such party may be lawfully entitled, and may accept, in connection therewith, the lawful return of goods, the sale or lease or of which shall have given rise to such Accounts Collateral. Bank Lender may, however, at any time after and during the continuance of an Event of Default and at Debtor's ’s expense, notify any parties obligated on any of the Accounts Collateral to make payment directly to Bank Lender of any amounts due or to become due thereunder and enforce collection of any of the Accounts Collateral by suit or otherwise and surrender, release or exchange all or any part thereof, or compromise, extend or renew the same for any period.