Common use of Collections on Accounts Clause in Contracts

Collections on Accounts. (a) The Agent hereby authorizes the Pledgor to collect the Accounts, and the Agent may curtail or terminate said authority at any time after the occurrence and during the continuance of an Event of Default. If required by the Agent at any time after the occurrence and during the continuance of an Event of Default, any payments of Accounts, when collected by the Pledgor during the continuance of such an Event of Default, (i) shall be forthwith (and, in any event, within two Business Days) deposited by the Pledgor in the exact form received, duly indorsed by the Pledgor to the Agent if required, in a Collateral Account maintained under the sole dominion and control of and on terms and conditions reasonably satisfactory to the Agent, subject to withdrawal by the Agent as provided in subsection 9.3 of this Agreement, and (ii) until so turned over, shall be held by the Pledgor in trust for the Agent and the Banks, segregated from all other funds of the Pledgor.

Collections on Accounts. (a) The Agent hereby authorizes the Pledgor Borrower to collect the Accounts, and the Agent may curtail or terminate said authority at any time after the occurrence and during the continuance of an Event of Default. If required by the Agent at any time after the occurrence and during the continuance of an Event of Default, any payments of Accounts, when collected by the Pledgor Borrower during the continuance of such an Event of Default, (i) shall be forthwith (and, in any event, within two Business Days) deposited by the Pledgor Borrower in the exact form received, duly indorsed by the Pledgor Borrower to the Agent if required, in a Collateral Account maintained under the sole dominion and control of and on terms and conditions reasonably satisfactory to the Agent, subject to withdrawal by the Agent as provided in subsection 9.3 of this Agreement, and (ii) until so turned over, shall be held by the Pledgor Borrower in trust for the Agent and the Banks, segregated from all other funds of the PledgorBorrower.