Common use of Direct Notification Clause in Contracts

Direct Notification. Upon the occurrence and during the continuance of an Event of Default, Collateral agent may notify Unified to make any payments with respect to the Collateral (including, without limitation, payment of regular dividends, proceeds of redemption of Pledged Collateral or return of Deposits) directly to Collateral Agent pursuant to Section 9607 of the Uniform Commercial Code. Member agrees that if any Pledged Collateral is redeemed by Unified for an amount determined in accordance with the redemption policy in effect from time to time as set forth in Unified’s bylaws, that Member shall not be entitled to a credit against the Secured Obligations in an amount in excess of such redemption price, and neither Collateral Agent nor any Secured Party shall incur any liability or responsibility to Member in connection therewith, notwithstanding the possibility that a substantially higher price might have been realized at a public sale or private sale of the Pledged Collateral.