Common use of Direct Notification Clause in Contracts

Direct Notification. From and after an Event of Default, that is not cured within the cure period specified in the Note, after notice to Debtor pursuant to Section 9502 of the California Commercial Code, Secured Party or Secured Party's Representative may, at any time, notify lessees, customers or account debtors of Debtor that the Accounts have been assigned to Secured Party and that Secured Party has a security interest therein, collect the Accounts directly, and charge the collection costs and expenses to Debtor's account, and Debtor shall collect all Accounts for the benefit of Secured Party and receive in trust all payments received on account of the Accounts. The receipt of any check or other item of payment by Secured Party shall not be considered a payment on account until such check or other item of payment is honored when presented for payment.