Collateral Account Application of Moneys Sample Clauses
The "Collateral Account; Application of Moneys" clause defines how funds held in a collateral account are managed and used by the secured party. Typically, this clause outlines the procedures for depositing, maintaining, and applying any money or proceeds received into the collateral account, often specifying that such funds may be used to pay down secured obligations or cover costs related to the agreement. By establishing clear rules for the handling and application of these funds, the clause ensures that both parties understand how collateral is managed and provides the secured party with a mechanism to recover amounts owed, thereby reducing credit risk.
Collateral Account Application of Moneys. SECTION 7.1 The Collateral Account. There has been established by the Administrative Agent an account which is entitled the "Collateral Account" (herein called the "Collateral Account"). The Collateral Account has been established and shall be maintained by the Administrative Agent at Bankers Trust Company. After all Senior First Lien Indebtedness shall have been indefeasibly paid in full in cash (including the cash collateralization of any letter of credit obligations) and all commitments of the Senior Lenders shall have terminated, all cash Proceeds of any Collateral received by the Administrative Agent shall be deposited in the Collateral Account and shall constitute Collateral hereunder and shall not constitute payment of the Secured Debt until applied in the manner contemplated in Section 7.4 hereof. At such time as all Senior First Lien Indebtedness shall have indefeasibly paid in full in cash (including the cash collateralization of any letter of credit obligations) and all commitments of the Senior Lenders shall have terminated, each Grantor shall deposit into the Collateral Account from time to time (A) the cash Proceeds of any of the Collateral (including pursuant to any disposition thereof), (B) the cash Proceeds of any condemnation or taking by eminent domain or similar proceeding or of any casualty, damage or destruction or loss of title with respect to any Collateral, (C) any cash in respect of any Collateral to which the Administrative Agent is entitled pursuant to the provisions of any Collateral Document or Debt Instrument, and (D) any other amounts that such Grantor desires to pledge to the Administrative Agent for the benefit of the Secured Parties as additional collateral security hereunder. The balance from time to time in the Collateral Account shall constitute part of the Collateral hereunder and shall not constitute payment of the Secured Debt until applied as provided in Section 7.4 hereof.
Collateral Account Application of Moneys. (a) The Collateral Account. On the date hereof there shall be established and, at all times thereafter until this Agreement shall have terminated, there shall be maintained with the Collateral Agent an account that shall be entitled the “Century Aluminum Collateral Account” (the “Collateral Account”). The Collateral Account shall be established and maintained by the Collateral Agent at its designated
Collateral Account Application of Moneys. (a) The Collateral Account. On the date hereof there shall be established and, at all times thereafter until this Agreement shall have terminated, there shall be maintained with the Collateral Agent an account that shall be entitled the “Century Aluminum Collateral Account” (the “Collateral Account”). The Collateral Account shall be established and maintained by the Collateral Agent at its designated corporate trust offices. All moneys that are received by the Collateral Agent after the occurrence of an Actionable Default in connection with any collection, sale, foreclosure or other realization upon any Collateral shall be deposited in the Collateral Account and thereafter shall be held and applied by the Collateral Agent in accordance with the terms of this Agreement, the other Security Documents and the Intercreditor Agreement. To the extent necessary, appropriate or desirable, the Collateral Agent from time to time may establish sub-accounts as part of the Collateral Account for the purpose of better identifying and maintaining proceeds of Collateral, all of which sub-accounts shall be treated as and be deemed equivalent to, the Collateral Account for all purposes hereof.
Collateral Account Application of Moneys