Collateral Control. All payments received in the lockbox account referred to in Section 4.4 of the Loan Agreement shall be applied by Silicon to the outstanding Revolving Loans. Borrower shall hold all payments on, and proceeds of, Accounts and all other Collateral in trust for Silicon, and Borrower shall immediately deliver all such payments and proceeds to Silicon in their original form, duly endorsed, to be applied to the Obligations in such order as Silicon shall determine. Borrower agrees that it will not commingle such payments and proceeds with any of Borrower’s other funds or property, but will hold such payments and proceeds separate and apart from such other funds and property and in an express trust for Silicon. Terms of this Agreement without the Asset Based Terms are referred to as the “Non-Asset Based Terms”.
Appears in 2 contracts
Sources: Loan and Security Agreement (Atheros Communications Inc), Loan Agreement (Atheros Communications Inc)