Payments on Receivables Sample Clauses
The "Payments on Receivables" clause governs how payments received from customers or debtors are handled when a party has sold or assigned its receivables to another entity. Typically, this clause specifies that any payments made on the receivables, whether received directly by the seller or by the assignee, must be promptly forwarded to the party entitled to them, often the purchaser or assignee of the receivables. For example, if a company sells its outstanding invoices to a factoring company, any payments from customers on those invoices must be remitted to the factor. This clause ensures that the rightful owner of the receivables receives the payments, preventing disputes and clarifying the process for handling funds.
Payments on Receivables. Each Obligor is required to send all payments with respect to each Receivable (other than Tooling Receivables) to a Lock-Box in the exclusive control of the Lock-Box Bank for deposit in a Lock-Box Account, and no funds other than payments with respect to the Receivables (which may be Tooling Receivables) are deposited in any such Lock-Box Account.
Payments on Receivables. Each Originator will, at all times, instruct all Account Debtors to deliver payments on the Pool Receivables to a Designated Deposit Account or a Controlled Account (or, prior to the Initial Borrowing Date, an Interim Deposit Account). If any payments on the Pool Receivables or other Collections are received by an Originator, it shall hold such payments in trust for the benefit of the Administrative Agent (on behalf of itself and the other Secured Parties under the ABL Credit Agreement) and promptly (but in any event within one (1) Business Day after receipt) remit such funds into a Designated Deposit Account, a Controlled Account or Agent Deposit Account. The Originators shall not take or permit any actions that would cause any funds other than Collections on Pool Receivables and other Collateral to be deposited into any Interim Deposit Account, Designated Deposit Account, Controlled Account or Agent Deposit Account. If any such funds are nevertheless deposited into any Interim Deposit Account, Designated Deposit Account, Controlled Account or Agent Deposit Account, the Originators will cause the Servicer to, within two (2) Business Days, identify and transfer such funds out of such account to (or pursuant to the instructions of) the Person entitled to such funds. The Originators will not, and will not instruct any other Person, to commingle Collections with any other funds. The Originators shall not add to, replace or terminate any of the Interim Deposit Accounts, Designated Deposit Accounts (or any related lock-box or post office box) or make any change in its (or their) instructions to the Account Debtors regarding payments to be made to the Designated Deposit Accounts (or any related lock-box or post office box), unless the Administrative Agent shall have received (x) prior written notice of such addition, termination or change and (y) a signed and acknowledged Cash Management Control Agreement (or amendment thereto) with respect to such new Designated Deposit Accounts (or any related lock-box or post office box) and (z) the requirements of Section 2.21 of the ABL Credit Agreement have been met.
Payments on Receivables. Each Seller will at all times instruct all Obligors to deliver all Collections on its respective Sold Receivables to a Lock-Box Account. If any Collections on a Seller's respective Sold Receivables are received by such Seller, such Seller shall hold such Collections in trust for the benefit of the Purchaser and promptly (but in any event within two Business Days after receipt) deposit such Collections into a Lock-Box Account. Each Seller shall use its reasonable best efforts to prevent any funds other than Collections on its respective Sold Receivables from being deposited into any Lock-Box Account; provided, however, that if any funds other than such Collections are nevertheless deposited into any Lock-Box Account, such applicable Seller will identify and remit such funds to the owner of such funds as soon as practicable. Any payment by an Obligor to any Seller shall, except as otherwise instructed by the Purchaser, be remitted to the Collection Agent as a Collection on the Receivables of such Obligor (starting with the oldest such Sold Receivable) to the extent of any amounts then due and payable thereunder before being applied to any other Receivable or other indebtedness of such Obligor.
Payments on Receivables. Each Originator will instruct all Account Debtors in respect of Subject Receivables to deliver payments on the Pool Receivables to an Intermediate Account or a Borrower Controlled Account. If any payments on the Pool Receivables or other Collections are received by an Originator, it shall hold such payments in trust for the benefit of the Administrative Agent (on behalf of itself and the other Secured Parties under the ABL Credit Agreement) and promptly (but in any event within two (2) Business Days after receipt thereof by Borrower) remit such funds into an Intermediate Account, a Borrower Controlled Account or Collateral Agent Deposit Account (subject to netting against amounts then payable by Buyer to such Originator). The Originators shall not instruct or permit any payments other than payments in respect of Pool Receivables and Related Assets to be made to any Intermediate Account or Borrower Controlled Account (except, with respect to any Borrower Controlled Account, amounts payable to such Borrower (including for purposes of on-payment to the Administrative Agent, the Lenders or as otherwise permitted under the Loan Documents)). If any such funds are nevertheless deposited into any Intermediate Account or Borrower Controlled Account, the Originators will cause the Servicer to, within three (3) Business Days of an Originator Responsible Officer having knowledge thereof, identify and transfer such funds out of such account to (or pursuant to the instructions of) the Person entitled to such funds. The Originators will not, and will not instruct any other Person, to commingle collections on Subject Receivables with any other funds. The Originators shall not add to, replace or terminate any of the Intermediate Accounts (or any related lock-box or post office box) or make any change in its (or their) instructions to the Account Debtors in respect of Subject Receivables regarding payments to be made to the Intermediate Accounts (or any related lock-box or post office box) other than instructing Account Debtors to make payments to a different Intermediate Account (or related lock-box or post office box), unless the Administrative Agent shall have received (x) prior written notice of such addition, replacement, termination or change (such consent not to be unreasonably withheld, delayed or conditioned) and (y) a signed and acknowledged Cash Management Control Agreement (or amendment thereto) with respect to any such new Intermediate Accounts (or any related ...
Payments on Receivables. The Servicer shall direct each Obligor to make all payments under the Receivables financed with Advances directly to the Lockbox Account or to a Blocked Account. All payments from Obligors under the Receivables which are received directly by the Servicer will be deposited into the Lockbox Account or to a Blocked Account no later than the Business Day following the day of receipt;
Payments on Receivables. All payments from Obligors under the Receivables which are received directly by the Borrower will be deposited into the Lockbox Account or a Blocked Account no later than the Business Day following the day of receipt.
Payments on Receivables. Each Borrower and each Servicer shall direct each Obligor to make all payments under the related Receivable financed with Advances directly to the applicable Lock-Box. All payments from Obligors under the Receivables which are received directly by a Borrower or a Servicer shall be deposited directly into the applicable Settlement Account as soon as practicable after receipt thereof (but in any event no later than one (1) Business Day following receipt thereof). In addition, each Borrower and each Servicer shall cause all other payments with respect to the Collateral to be made directly to the applicable Settlement Account. Any such payments with respect to such Collateral (other than payments received from Obligors) received directly by a Borrower or a Servicer shall be deposited into the applicable Settlement Account as soon as practicable after receipt thereof (but in any event no later than one (1) Business Day following receipt thereof).