Covenants of the Bank. The Bank hereby covenants and agrees with HRAC as follows: (a) Receivables Not To Be Evidenced by Promissory Notes. Except in connection with its enforcement or collection of an Account, the Bank will take no action to cause any Receivable to be evidenced by any instrument (as defined in the UCC) and if any Receivable is so evidenced as a result of any action by the Bank it shall be deemed to be an Ineligible Receivable in accordance with Section 6.01(a) and shall be reassigned to the Bank in accordance with Section 6.01(b)
Appears in 2 contracts
Sources: Receivables Purchase Agreement (Hrsi Funding Inc Ii), Receivables Purchase Agreement (Hrsi Funding Inc Ii)