Common use of Collection of Accounts, Proceeds of Collateral Clause in Contracts

Collection of Accounts, Proceeds of Collateral. Each Borrower agrees that all invoices rendered and other requests made by such Borrower for payment in respect of Accounts shall contain a written statement directing payment in respect of such Accounts to be paid to a lockbox established pursuant to subsection 6.2.4. To expedite collection, each Borrower shall endeavor in the first instance to make collection of its Accounts for Agent. All remittances received by each Borrower on account of Accounts, together with the proceeds of any other Collateral, shall be held as Agent's property, for its benefit and the benefit of Lenders, by such Borrower as trustee of an express trust for Agent's benefit and such Borrower shall immediately deposit same in kind in the Dominion Account. Agent retains the right at all times after the occurrence and during the continuance of an Event of Default to notify Account Debtors that each Borrower's Accounts have been assigned to Agent and to collect each Borrower's Accounts directly in its own name, or in the name of Agent's agent, and to charge the collection costs and expenses, including attorneys' fees, jointly and severally to Borrowers.

Appears in 2 contracts

Samples: Loan and Security Agreement (Kinetek Inc), Loan and Security Agreement (Kinetek Inc)

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Collection of Accounts, Proceeds of Collateral. Each Borrower agrees that all invoices rendered and other requests made by such Borrower for payment in respect of Accounts shall contain a written statement directing payment in respect of such Accounts to be paid to a lockbox established pursuant to subsection 6.2.4. To expedite collection, each Borrower shall endeavor in the first instance to make collection of its Accounts for Agent. All remittances received by each Borrower on account of Accounts, together with the proceeds of any other Collateral, shall be held as Agent's property, for its benefit and the benefit of Lenders, by such Borrower as trustee of an express trust for Agent's benefit and such Borrower shall immediately deposit same in kind in the Dominion Account. Agent retains the right at all times after the occurrence and during the continuance of a Default or an Event of Default to notify Account Debtors that each a Borrower's Accounts have been assigned to Agent and to collect each such Borrower's Accounts directly in its own name, or in the name of Agent's agent, and to charge the collection costs and expenses, including attorneys' fees, jointly and severally to Borrowerssuch Borrower.

Appears in 2 contracts

Samples: Loan and Security Agreement (D & K Healthcare Resources Inc), Loan and Security Agreement (D & K Healthcare Resources Inc)

Collection of Accounts, Proceeds of Collateral. Each Borrower agrees that all invoices rendered and other requests made by such Borrower for payment in respect of Accounts shall contain a written statement directing payment in respect of such Accounts to be paid to a lockbox established pursuant to subsection 6.2.4. To expedite collection, each Borrower shall endeavor in the first instance to make collection of its Accounts for Agent. All remittances received by each Borrower on account of Accounts, together with the proceeds of any other Collateral, shall be held as Agent's property, for its benefit and the benefit of Lenders, by such Borrower as trustee of an express trust for Agent's benefit and such Borrower shall immediately deposit same in kind in the Dominion Account. Agent retains the right at all times after the occurrence and during the continuance of a Default or an Event of Default to notify Account Debtors that each Borrower's Accounts have been assigned to Agent and to collect each Borrower's Accounts directly in its own name, or in the name of Agent's agent, and to charge the collection costs and expenses, including attorneys' fees, jointly and severally to BorrowersBorrower.

Appears in 2 contracts

Samples: Loan and Security Agreement (Weirton Steel Corp), Loan and Security Agreement (Bayou Steel Corp)

Collection of Accounts, Proceeds of Collateral. Each Borrower agrees Borrowers agree that all invoices rendered and other requests made by such any Borrower for payment in respect of Accounts shall contain a written statement directing payment in respect of such Accounts to be paid to a lockbox established pursuant to subsection 6.2.4. To expedite collection, each Borrower Borrowers shall endeavor in the first instance to make collection of its Accounts for Agent. All remittances received by each any Borrower on account of Accounts, together with the proceeds of any other Collateral, shall be held as Agent's property, for its benefit and the benefit of Lenders, by such Borrower Borrowers as trustee of an express trust for Agent's benefit and such Borrower Borrowers shall immediately deposit same in kind in the Dominion Account. Agent retains the right at all times after the occurrence and during the continuance of a Default or an Event of Default to notify Account Debtors that each Borrower's Borrowers' Accounts have been assigned to Agent and to collect each Borrower's Borrowers' Accounts directly in its own name, or in the name of Agent's agent, and to charge the collection costs and expenses, including attorneys' fees, jointly and severally to Borrowers.

Appears in 1 contract

Samples: Loan and Security Agreement (Pw Eagle Inc)

Collection of Accounts, Proceeds of Collateral. Each Borrower agrees that all invoices rendered and other requests made by such any Borrower for payment in respect of Accounts shall contain a written statement directing payment in respect of such Accounts to be paid to a lockbox established pursuant to subsection 6.2.4. To expedite collection, each Borrower shall endeavor in the first instance to make collection of its Accounts for Agent. All remittances received by each any Borrower on account of Accounts, together with the proceeds of any other Collateral, shall be held as Agent's ’s property, for its benefit and the benefit of Lenders, by such Borrower as trustee of an express trust for Agent's ’s benefit and such each Borrower shall immediately deposit same in kind in the Dominion Account. Agent retains the right at all times after the occurrence and during the continuance of a Default or an Event of Default to notify Account Debtors that each any Borrower's ’s Accounts have been assigned to Agent and to collect each Borrower's Borrowers’ Accounts directly in its own name, or in the name of Agent's ’s agent, and to charge the collection costs and expenses, including attorneys' fees, jointly and severally to Borrowers.

Appears in 1 contract

Samples: Loan and Security Agreement (Mfri Inc)

Collection of Accounts, Proceeds of Collateral. Each Borrower agrees that all invoices rendered and other requests made by such Borrower for payment Account Debtors shall be directed to make all payments in respect of their Accounts shall contain a written statement directing payment in respect of such Accounts to be paid to a lockbox or blocked account established pursuant to subsection 6.2.4. To expedite collection, each Borrower shall endeavor in the first instance to make collection of its Accounts for Administrative Agent. All remittances received by each Borrower on account of Accounts, together with the proceeds of any other Collateral, other than Senior Noteholder Priority Collateral, shall be held as Administrative Agent's property, for its benefit and the benefit of Lenders, by such Borrower as trustee of an express trust for Administrative Agent's benefit and such Borrower shall immediately deposit same in kind in the Dominion AccountAccount or a blocked account. Administrative Agent retains the right at all times after the occurrence and during the continuance of an Event of Default to notify Account Debtors that each Borrower's Accounts have been assigned to Administrative Agent and to collect each Borrower's Accounts directly in its own name, or in the name of Administrative Agent's agent, and to charge the collection costs and expenses, including attorneys' fees, jointly and severally to Borrowers.

Appears in 1 contract

Samples: Loan and Security Agreement (Jacuzzi Brands Inc)

Collection of Accounts, Proceeds of Collateral. Each Borrower agrees that all invoices rendered and other requests made by such Borrower for payment in respect of Accounts shall contain a written statement directing payment in respect of such Accounts to be paid to a lockbox established pursuant to subsection 6.2.4. To expedite collection, each Borrower shall endeavor in the first instance to make collection of its Accounts for Agent. All remittances received by each Borrower on account of Accounts, together with the proceeds of any other Collateral, shall be held as Agent's property, for its benefit and the benefit of LendersLenders as provided in this Agreement, by such Borrower as trustee of an express trust for Agent's benefit and such Borrower shall immediately deposit same in kind in the Dominion Account. Agent retains the right at all times after the occurrence and during the continuance of an Event of Default to notify Account Debtors that each Borrower's Accounts have been assigned to Agent and to collect each Borrower's Accounts directly in its own name, or in the name of Agent's agent, and to charge the collection costs and expenses, including attorneys' fees, jointly and severally to Borrowers.

Appears in 1 contract

Samples: Loan and Security Agreement (Falcon Products Inc /De/)

Collection of Accounts, Proceeds of Collateral. Each Borrower agrees that all invoices rendered and other requests made by such Borrower for payment in respect of Accounts shall contain a written statement directing payment in respect of such Accounts to be paid to a lockbox established pursuant to subsection 6.2.4. To expedite collection, each Borrower shall endeavor in the first instance to make collection of its Accounts for Agent. All remittances received by each Borrower on account of Accounts, together with the proceeds of any other Collateral, shall be held as Agent's ’s property, for its benefit and the benefit of Lenders, by such Borrower as trustee of an express trust for Agent's ’s benefit and such Borrower shall immediately deposit same in kind in the Dominion Account. Agent retains the right at all times after the occurrence and during the continuance of a Default or an Event of Default to notify Account Debtors that each Borrower's ’s Accounts have been assigned to Agent and to collect each Borrower's ’s Accounts directly in its own name, or in the name of Agent's ’s agent, and to charge the collection costs and expenses, including attorneys' fees, jointly and severally to BorrowersBorrower.

Appears in 1 contract

Samples: Loan and Security Agreement (Pw Eagle Inc)

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Collection of Accounts, Proceeds of Collateral. Each Borrower agrees that all invoices rendered and other requests made by such Borrower for payment in respect of Accounts shall contain a written statement directing payment in respect of such Accounts to be paid to a lockbox established pursuant to subsection 6.2.4. To expedite collection, each Borrower shall endeavor in the first instance to make collection of its Accounts for Agent. All remittances received by each Borrower on account of Accounts, together with the proceeds of any other Collateral, shall be held as Agent's property, for its benefit and the benefit of LendersTranche B Agent and Lenders as provided in this Agreement, by such Borrower as trustee of an express trust for Agent's benefit and such Borrower shall immediately deposit same in kind in the Dominion Account. Agent retains the right at all times after the occurrence and during the continuance of an Event of Default to notify Account Debtors that each Borrower's Accounts have been assigned to Agent and to collect each Borrower's Accounts directly in its own name, or in the name of Agent's agent, and to charge the collection costs and expenses, including attorneys' fees, jointly and severally to Borrowers.

Appears in 1 contract

Samples: Loan and Security Agreement (Falcon Products Inc /De/)

Collection of Accounts, Proceeds of Collateral. Each Borrower ---------------------------------------------- agrees that all invoices rendered and other requests made by such any Borrower for payment in respect of Accounts shall contain a written statement directing payment in respect of such Accounts to be paid to a lockbox established pursuant to subsection 6.2.4. To expedite collection, each Borrower shall endeavor in the first instance to make collection of its Accounts for Agent. All remittances received by each any Borrower on account of Accounts, together with the proceeds of any other Collateral, shall be held as Agent's property, for its benefit and the benefit of Lenders, by such Borrower as trustee of an express trust for Agent's benefit and such Borrower shall immediately deposit the same in kind in the Dominion Account. Agent retains the right at all times after the occurrence and during the continuance of a Default or an Event of Default to notify Account Debtors that each Borrower's Borrowers' Accounts have been assigned to Agent and to collect each Borrower's Borrowers' Accounts directly in its own name, or in the name of Agent's agent, and to charge the collection costs and expenses, including attorneys' fees, jointly and severally to Borrowers.

Appears in 1 contract

Samples: Loan and Security Agreement (Velocity Express Corp)

Collection of Accounts, Proceeds of Collateral. Each Borrower agrees that all invoices rendered and other requests made by such any Borrower for payment in respect of Accounts shall contain a written statement directing payment in respect of such Accounts to be paid to a lockbox established pursuant to subsection 6.2.4. To expedite collection, each Borrower shall endeavor in the first instance to make collection of its Accounts for Agent. All remittances received by each any Borrower on account of Accounts, together with the proceeds of any other Collateral, shall be held as Agent's ’s property, for its benefit and the benefit of Lenders, by such Borrower as trustee of an express trust for Agent's ’s benefit and such Borrower shall immediately deposit same in kind in the Dominion Account. Agent retains the right at all times after the occurrence and during the continuance of a Default or an Event of Default to notify Account Debtors that each Borrower's Borrowers’ Accounts have been assigned to Agent and to collect each Borrower's Borrowers’ Accounts directly in its own name, or in the name of Agent's ’s agent, and to charge the collection costs and expenses, including attorneys' fees, jointly and severally to Borrowers.

Appears in 1 contract

Samples: Loan and Security Agreement (Rewards Network Inc)

Collection of Accounts, Proceeds of Collateral. Each Borrower agrees that all invoices rendered and other requests made by such any Borrower for payment in respect of Accounts shall contain a written statement directing payment in respect of such Accounts to be paid to a lockbox established pursuant to subsection 6.2.4. To expedite collection, each Borrower shall endeavor in the first instance to make collection of its Accounts for Agent. All remittances received by each any Borrower on account of Accounts, together with the proceeds of any other ABL Priority Collateral, shall be held as Agent's ’s property, for its benefit and the benefit of Lenders, by such Borrower as trustee of an express trust for Agent's ’s benefit and such Borrower shall immediately deposit same in kind in the Dominion Account. Agent retains the right at all times after the occurrence and during the continuance of an Event of Default to notify Account Debtors that each Borrower's Borrowers’ Accounts have been assigned to Agent and to collect each Borrower's Borrowers’ Accounts directly in its own name, or in the name of Agent's ’s agent, and to charge the collection costs and expenses, including attorneys' fees, jointly and severally to Borrowers.

Appears in 1 contract

Samples: Loan and Security Agreement (Cambium Learning Group, Inc.)

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