Lockbox definition
Examples of Lockbox in a sentence
Each Loan Party hereby acknowledges and agrees that during a Cash Dominion Period, (i) such Loan Party has no right of withdrawal from the Lockbox Accounts, (ii) the funds on deposit in the Lockbox Accounts shall at all times be collateral security for all of the Obligations and (iii) the funds on deposit in the Lockbox Accounts shall be transferred daily to the Collateral Agent’s account for application to the Obligations in accordance herewith.
During a Cash Dominion Period, the Lockbox Accounts and each Controlled Account shall at all times be under the sole dominion and control of the Collateral Agent.
The outgoing Servicer shall, upon the request of the Purchaser, but at the expense of the outgoing Servicer, deliver to the Successor Servicer all documents and records relating to each such Lockbox Agreement and an accounting of amounts collected and held by a Lockbox Bank and otherwise use its commercially reasonably efforts to effect the orderly and efficient transfer of any Lockbox Agreement to the Successor Servicer.
All such amounts held in the Lockbox Account shall not be subject to any Liens, other than Permitted Liens.
In the event the Servicer shall for any reason no longer be acting as such, the Successor Servicer shall thereupon assume all of the rights and obligations of the outgoing servicer under each Lockbox Agreement; provided, however, that the Successor Servicer shall not be liable for any acts or obligations of the Servicer arising prior to such succession.