Collateral Control. The Borrower agrees that it will not transfer, or cause to have been transferred, title to or possession of any interest in the Collateral, or any part thereof, other than in the normal course of business, to any person or entity, without the prior express written consent of the Secured Party. The Debtor shall provide the Secured Party promptly with any information concerning the Collateral which shall be reasonably required by the Secured Party. So long as no event of default exists under this Agreement or under any of the Transaction Documents as that term is defined in the Loan Agreement, the Debtor shall be entitled to receive and collect, comprise and settle all proceeds of its Collateral. Upon a default under this Agreement or the Transaction Documents, the Debtor’s right to collect said proceeds shall be terminated and the Debtor shall hold all of said proceeds in trust for the account of the Secured Party in a separate lock box or specifically designated account, and shall deliver the same of the Secured Party in the identical form received.
Appears in 2 contracts
Sources: Security Agreement (X-Factor Communications Holdings, Inc.), Security Agreement (X-Factor Communications Holdings, Inc.)
Collateral Control. The Borrower agrees that it will not transfer, or cause to have been transferred, title to or possession of any interest in the Collateral, or any part thereof, other than in the normal course of business, to any person or entity, without the prior express written consent of the Secured PartyParty (except for Permitted Encumbrances set forth in Schedule B). The Debtor shall provide the Secured Party promptly with any information concerning the Collateral which shall be reasonably required by the Secured Party. So long as no event of default exists under this Agreement or under any of the Transaction Documents as that term is defined in the Loan AgreementDocuments, the Debtor shall be entitled to receive and collect, comprise and settle all proceeds of its Collateral. Upon a default under this Agreement or the Transaction Documents, the Debtor’s 's right to collect said proceeds shall be terminated and the Debtor shall hold all of said proceeds in trust for the account of the Secured Party in a separate lock box or specifically designated account, and shall deliver the same of the Secured Party in the identical form received.
Appears in 1 contract
Sources: Security Agreement (X-Factor Communications Holdings, Inc.)