Common use of Collections on Accounts Clause in Contracts

Collections on Accounts. If required by the Agent at any time when an Event of Default has occurred and is continuing, any payments of Accounts, when collected by Grantor, shall be immediately transferred by Grantor to the Agent, subject to disposition by the Agent for the account of the Lenders only. Until so turned over, all such payments shall be held by Grantor in trust for the benefit of the Agent and the Lenders, segregated from other funds of Grantor. All Proceeds constituting collections of Accounts while held by the Agent (or by Grantor in trust for the benefit of the Agent and the Lenders) shall continue to be collateral security for all of the Obligations and shall not constitute payment thereof until applied as hereinafter provided. At any time when an Event of Default has occurred and is continuing, at the Agent's election, the Agent shall hold all or any part of such funds on account of the Obligations (whether matured or unmatured) and may apply such funds to the obligations then due and owing, and, except as otherwise may be required under the Credit Agreement, any part of such funds which the Agent does not so apply shall be paid over from time to time by the Agent to Grantor or to whomsoever may be lawfully entitled to receive the same. At any time when an Event of Default has occurred and is continuing, at the Agent's request, Grantor shall deliver to the Agent all original and other documents evidencing, and relating to, the agreements and transactions which gave rise to the Accounts, including all statements relating to the Accounts.

Collections on Accounts. If required by the Administrative Agent at any time when an Event of Default has occurred and is continuing, any payments of Accounts, when collected by the Grantor, shall be immediately forthwith (and, in any event, within two Business Days of receipt by the Grantor) transferred by the Grantor to the Administrative Agent, subject to disposition by the Administrative Agent for the account of the Lenders only, as hereinafter provided. Until so turned over, all such payments shall be held by the Grantor in trust for the benefit of the Administrative Agent and the Lenders, segregated from other funds of the Grantor. All Proceeds constituting collections of Accounts while held by the Administrative Agent (or by the Grantor in trust for the benefit of the Agent Administrative Agent, the Other Representatives and the Lenders) shall continue to be collateral security for all of the Obligations and shall not constitute payment thereof until applied as hereinafter provided. At any time when an Event of Default has occurred and is continuing, at the Administrative Agent's election, the Administrative Agent shall hold all or any part of such funds on account of the Obligations (whether matured or unmatured) and may apply such funds to the obligations then due and owing, and, except as otherwise may be required under the Credit Agreement, and any part of such funds which the Administrative Agent does not so apply shall be paid over from time to time by the Administrative Agent to the Grantor or to whomsoever may be lawfully entitled to receive the same. At any time when an Event of Default has occurred and is continuing, at the Administrative Agent's request, the Grantor shall deliver to the Administrative Agent all original and other documents evidencing, and relating to, the agreements and transactions which gave rise to the Accounts, including including, without limitation, all statements relating to the Accounts.