Common use of Collateral Notes Clause in Contracts

Collateral Notes. Pioneer hereby grants to all of the Banks a security interest in all notes payable to Pioneer by any and all of its Subsidiaries now or at any time hereafter in the form of the Subsidiary Revolving Grid Note or otherwise. Upon execution hereof, Pioneer will deliver to the Agent Bank possession of all existing notes payable by any and all of its Subsidiaries to it and within three (3) days after the future execution of any note payable by any Subsidiary to Pioneer it will deliver possession of the same to the Agent Bank. All notes payable to Pioneer by its Subsidiaries shall be endorsed in blank when delivered to the Agent Bank by Pioneer. The Banks agree that they will not, prior to the declaration of a default hereunder, demand payment, except as otherwise expressly provided in this Agreement, of any note in the possession of the Agent Bank which is payable to Pioneer by any of its Subsidiaries because any such note is payable on demand. Pioneer also hereby assigns to all of the Banks, and grants to all of the Banks a security interest in, all of its rights under that certain Assignment of Note Payments between Pioneer and each of its Subsidiaries, except Pioneer Military Insurance, dated June 9, 1993 to directly receive from each of such Subsidiaries the proceeds of all note payments receivable by its Subsidiaries from their customers. The Banks further agree to forbear exercise of their rights under such Assignment of Note Payments unless and until Pioneer receives notice from any Bank declaring Pioneer to be in default hereunder because of the occurrence of an Event of Default.

Collateral Notes. Pioneer hereby grants to all of the Banks a security interest in all notes payable to Pioneer by any and all of its Subsidiaries now or at any time hereafter in the form of the Subsidiary Revolving Grid Note or otherwiseotherwise and each of its Subsidiaries, now existing and hereafter acquired or created, except Pioneer Military Insurance Company, hereby grants to the Banks a security interest in all notes payable to such Subsidiaries by their customers and will execute a Security Agreement in the form of Exhibit P attached hereto. Upon execution hereof, Pioneer will deliver to the Agent Bank possession of all existing notes payable by any and all of its Subsidiaries to it and within three (3) days after the future execution of any note payable by any Subsidiary to Pioneer it will deliver possession of the same to the Agent Bank. All notes payable to Pioneer by its Subsidiaries shall be endorsed in blank when delivered to the Agent Bank by Pioneer. The Banks agree that they will not, prior to the declaration of a default hereunder, demand payment, except as otherwise expressly provided in this Agreement, of any note in the possession of the Agent Bank which is payable to Pioneer by any of its Subsidiaries because any such note is payable on demand. Pioneer also hereby assigns to all of the Banks, and grants to all of the Banks a security interest in, in all of its rights under that certain Assignment of Note Payments and Security Agreement in the form of Exhibit J attached hereto between Pioneer and each of its Subsidiaries, except Pioneer Military InsuranceInsurance Company, dated June 9the Effective Date, 1993 to directly receive from each of such Subsidiaries the proceeds of all note payments receivable by its Subsidiaries from their customers. The Banks further agree to forbear exercise of their the rights under each such Security Agreement and each such Assignment of Note Payments and Security Agreement unless and until Pioneer receives the Borrowers receive notice from any Bank declaring Pioneer any Borrower to be in default hereunder because of the occurrence of an Event of Default.