Receipt and Credit for Collections. Concurrently with the execution of this Agreement, the Borrower shall enter into a Lock Box Agreement with the Lender and NationsBank (the "Bank") pursuant to which the Bank will be granted access to the post office box to which all Account Debtors shall be instructed to forward payments with respect to all Property. All checks, drafts, cash, notes, money orders, acceptances and other remittances in part or full payment with respect to the Property ("Collections") received through the Lock Box shall be retained by the Bank and processed in accordance with the Lock Box Agreement. All Collections received directly by the Borrower shall immediately be sent or delivered by the Borrower to the post office box that is part of the lock box arrangement. The Bank shall, without further inquiry and without regard to any instructions from the Borrower, send all collections by electronic funds transfer to the Lender at such account or accounts as the Lender shall direct in the Lock Box Agreement, or otherwise in writing from time to time. Any fees or expenses charged to the Lender by the Bank or any other bank for transfer of funds from the Borrower's account shall be charged as accrued, as a debit to the Obligations.
Receipt and Credit for Collections. Until their authority to do so is terminated by Banks at Bank's option, which option shall be available to Banks at any time after an Event of Default that is continuing, Borrower, GRS and GMO shall, at their own expense, collect all amounts unpaid on Receivables and all receipts from the sale or other disposition of Inventory (other than credit card transactions settled through Harrxx) xxd deliver in accordance with section 2.5.2 hereof immediately upon receipt, all checks, drafts, cash, notes, money orders, acceptances and other remittances, including payments on amounts owing to Borrower from GRS and GMO (collectively, "Receipts") received in part or full payment of or with respect to the Collateral or the Subsidiary Collateral in precisely the form received (but endorsed by Borrower, GRS or GMO, as applicable, if necessary for collection). Until such delivery Borrower, GRS and GMO shall not commingle any Receipts with their own funds or any of their property or use the Receipts in any way except to pay the Obligations (as defined in the Security Agreement) but shall hold the Receipts in trust for Banks. With respect to credit card transactions settled through Harrxx, all amounts otherwise payable to or for the account of Borrower, GRS or GMO pursuant to the Merchant Agreement shall be transferred by Harrxx xx Bank One for application to the Obligations.
Receipt and Credit for Collections. Until its authority to do so is terminated by Bank, Borrower shall, at its own expense, collect all amounts unpaid on Receivables, and deliver to Bank immediately upon receipt, all checks, drafts, cash, notes, money orders, acceptances and other remittances ("Collections") received in part or full payment of or with respect to the Collateral in precisely the form received (but endorsed by Borrower if necessary for collection). All Collections in part or full payment of and with respect to the Collateral received by Bank shall be processed and retained by Bank in a depository account (the "Cash Collateral Account") for application to the Obligations. The Cash Collateral Account shall be in Bank's name and Borrower shall have no right to make withdrawals or transfers from the Cash Collateral Account or otherwise have any right to access or control the Cash Collateral Account. Until such delivery Borrower shall not commingle any Collection with its own funds or any of its property or use the Collection in any way except to pay its Obligations to Bank but shall hold the Collection in trust for Bank. In the event that any such item, the amount of which has been credited against the Obligations, is subsequently dishonored or otherwise returned unpaid to Bank, Bank may retroactively debit the Borrower's loan account ledger for the Revolving Credit Facility for the amount of such item, or debit the Borrower's commercial demand account maintained with Bank for the amount of such item.
Receipt and Credit for Collections. Within 60 days after the Closing Date, the Borrower shall enter into a Lock Box Agreement with the Lender pursuant to which the Lender will be granted access to the post office box to which all Account Debtors shall be instructed to forward payments with respect to all Property. All checks, drafts, cash, notes, money orders, acceptances and other remittances in part or full payment with respect to the Property ("Collections") received through the Lock Box shall be retained by the Lender and processed in accordance with the Lock Box Agreement. All Collections received directly by the Borrower shall immediately be sent or delivered by the Borrower to the post office box that is part of the lock box arrangement. The Lender shall, without further inquiry and without regard to any instructions from the Borrower, deposit all collections in such account or accounts as the Lender shall from time to time elect. Any fees or expenses charged to the Lender by any other bank for transfer of funds from the Borrower's account shall be charged as accrued, as a debit to the Obligations.
