Common use of Dealing with Collateral Clause in Contracts

Dealing with Collateral. Until the occurrence of an Event of Default (as hereinafter defined), the Guarantor may conduct its business and deal with the Collateral in its ordinary course of business and may sell its Inventory and collect its Accounts in the ordinary course of its business. The Guarantor agrees to deposit all Proceeds from the disposition of Inventory into its account with its regular bankers and to inform such bank of the Security Interest and the trust established herein attaching to the funds in such account in favour of the Secured Party. The Guarantor agrees to inform the Secured Party of any change in its regular bankers and not to open new bank accounts without first notifying the Secured Party. The Secured Party may, after the occurrence of an Event of Default, notify any Person obligated to the Guarantor in respect of an Account, Chattel Paper or an Instrument to make payment to the Secured Party of all such present and future amounts due. The last day of the term of any lease, sublease or agreement therefor is specifically exempted from the Security Interest, but the Guarantor agrees to stand possessed of such last day in trust for any person acquiring such interest of the Guarantor. To the extent that the creation of the Security Interest would constitute a breach or cause the acceleration of any agreement rights, licence or permit to which the Guarantor is a party, the Security Interest shall not attach thereto but the Guarantor shall hold its interest therein in trust for the Secured Party and shall assign such agreement, right, licence or permit to the Secured Party forthwith upon obtaining the consent of the other party thereto.

Dealing with Collateral. Until the occurrence of an Event of Default (as hereinafter defined), the Guarantor Debtor may conduct its business and deal with the Collateral in its ordinary course of business and may sell its Inventory and collect its Accounts in the ordinary course of its business. The Guarantor Debtor agrees to deposit all Proceeds from the disposition of Inventory into its account with its regular bankers and to inform such bank of the Security Interest and the trust established herein attaching to the funds in such account in favour of the Secured Party. The Guarantor Debtor agrees to inform the Secured Party of any change in its regular bankers and not to open new bank accounts without first notifying the Secured Party. The Secured Party may, after the occurrence of an Event of Default, notify any Person obligated to the Guarantor Debtor in respect of an Account, Chattel Paper or an Instrument to make payment to the Secured Party of all such present and future amounts due. The last day of the term of any lease, sublease or agreement therefor is specifically exempted from the Security Interest, but the Guarantor Debtor agrees to stand possessed of such last day in trust for any person acquiring such interest of the GuarantorDebtor. To the extent that the creation of the Security Interest would constitute a breach or cause the acceleration of any agreement rights, licence or permit to which the Guarantor Debtor is a party, the Security Interest shall not attach thereto but the Guarantor Debtor shall hold its interest therein in trust for the Secured Party and shall assign such agreement, right, licence or permit to the Secured Party forthwith upon obtaining the consent of the other party thereto.