Common use of Notification to Account Debtors Clause in Contracts

Notification to Account Debtors. The Collateral Agent shall have the right to notify, or require each Grantor to notify, any Account Debtors with respect to amounts due or to become due to such Grantor in respect of any Collateral, of the existence of the Security Interest, to direct such Account Debtors to make payment of all such amounts directly to the Collateral Agent, and, upon such notification and at the expense of such Grantor, to enforce collection of any such amounts and to adjust, settle or compromise the amount or payment thereof, in the same manner and to the same extent as such Grantor might have done. Grantor shall not adjust, settle or compromise the amount or payment of any such amount, or release wholly or partly any Account Debtor with respect thereto or allow any credit or discount thereon.

Notification to Account Debtors. The Collateral Agent shall have the right to notify, or require each Grantor to notify, any Account Debtors with respect to amounts due or to become due to such Grantor in respect of any Collateral, of the existence of the Security Interest, to direct such Account Debtors to make payment of all such amounts directly to the Collateral Agent, and, upon such notification and at the expense of such Grantor, to enforce collection of any such amounts and to adjust, settle or compromise the amount or payment thereof, in the same manner and to the same extent as such Grantor might have done. No Grantor shall not adjust, settle or compromise the amount or payment of any such amount, or release wholly or partly any Account Debtor with respect thereto or allow any credit or discount thereon.