Collections Account; Blocked Accounts; Lockbox Account Agreements Sample Clauses

Collections Account; Blocked Accounts; Lockbox Account Agreements. Borrowers shall instruct all Account Debtors to forward payments on the Accounts to one or more lockboxes under the control of Bank for deposit into the Collections Account or the Blocked Accounts. All payments on Accounts and other Collateral received by Borrowers and in the Blocked Accounts shall be forwarded by Borrowers to the Collections Account. Borrowers shall pay all of Bank's or such Clearing Bank' standard fees and charges in connection with such lockbox arrangement (if any), Collections Account and Blocked Accounts as such fees and charges may change from time to time. In the event Bank requires a lockbox arrangement hereunder, each affected Borrower shall notify Account Debtors on its Accounts to forward payments on such Accounts to the lockbox; provided, however, that after an Event of Default Bank shall have the right directly to contact such Account Debtors at any time to ensure that payments on the Accounts are directed to the lockbox. All payment items received by any Borrower on Accounts and sale of Inventory and other Collateral shall be held by such Borrower in trust for Bank and not commingled with such Borrower's funds and shall be deposited promptly by such Borrower to the Collections Account or the Blocked Accounts. All such items shall be the exclusive property of Bank upon the earlier of the receipt thereof by Bank or by any Borrower. Each Borrower hereby grants to Bank a security interest in and lien upon all items and balances held in any lockbox, the Disbursements Account, the Collections Account and the Blocked Accounts as Collateral for the Obligations, in addition to and cumulative with the general security interest in all assets of each Borrower (including all Deposit Accounts) contained in Section 9.1 hereof. Each Lockbox Account Agreement shall be in a form reasonably acceptable to Bank and shall provide for, among other things, (A) that the receipts and any and all other funds on deposit in the Blocked Account subject to such Lockbox Account Agreement are the collateral of Bank and that Bank has "control" over such Blocked Account pursuant to Article 9 of the Code, (B) that such bank has no lien upon, or right to setoff against, the Blocked Account subject to such Lockbox Account Agreement, the receipts, or any other funds from time to time on deposit therein, other than for its service fees and other charges relating to such account and for returned checks or other items of payment, and (C) that such bank will wire, or ...
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Related to Collections Account; Blocked Accounts; Lockbox Account Agreements

  • Blocked Accounts Agent shall have received duly executed agreements establishing the Blocked Accounts or Depository Accounts with financial institutions acceptable to Agent for the collection or servicing of the Receivables and proceeds of the Collateral;

  • Lockbox Accounts The names and addresses of all the Lockbox Banks, together with the account numbers of the Lockbox Accounts of the Seller at each Lockbox Bank and the post office box numbers of the lockboxes, are listed on Schedule 6.1(o) (or have been notified to and approved by the Agents in accordance with Section 7.3(d)) and are the only post office boxes and accounts into which Collections of Receivables are deposited or remitted. The Seller has not granted any Person, other than the Administrative Agent for the benefit of the Secured Parties as contemplated by this Agreement, control of any lockbox or Lockbox Account, or the right to take control of any such lockbox or Lockbox Account at a future time.

  • Collection Accounts Section 3.11 Withdrawals from the Collection Accounts..................... Section 3.12 Investment of Funds in the Collection Accounts and the Distribution Account......................................... Section 3.13 Maintenance of Hazard Insurance and Errors and Omissions and Fidelity Coverage........................................ Section 3.14 Enforcement of Due-on-Sale Clauses; Assumption Agreements.... Section 3.15

  • Account Agreement Lender shall have received the original of the Account Agreement executed by each of Cash Management Bank and Borrower.

  • Lock-Box Accounts The names and addresses of all of the Lock-Box Banks, together with the account numbers of the Lock-Box Accounts at such Lock-Box Banks, are specified in Schedule 6.1(n).

  • Lockbox Account Each Obligor has been, or will be, directed to make all payments on their related Receivable to the Lockbox Processor for deposit into the Lockbox Account.

  • Deposits to Lock-Box Accounts Deposit or otherwise credit, or cause or permit to be so deposited or credited, to any Lock-Box Account cash or cash proceeds other than Collections of Pool Receivables.

  • Collateral Accounts Evidence that the Collateral Accounts have been established;

  • Deposit Account Control Agreements the Deposit Account control agreements to be executed by each institution maintaining a Deposit Account for an Obligor, in favor of Agent, for the benefit of Secured Parties, as security for the Obligations.

  • Lockboxes Upon request of the Administrative Agent after the occurrence and during the continuance of a Default, each Grantor shall execute and deliver to the Administrative Agent irrevocable lockbox agreements in the form provided by or otherwise acceptable to the Administrative Agent, which agreements shall be accompanied by an acknowledgment by the bank where the lockbox is located of the Lien of the Administrative Agent granted hereunder and of irrevocable instructions to wire all amounts collected therein to a special collateral account at the Administrative Agent.

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