Common use of Collateral Proceeds Account Clause in Contracts

Collateral Proceeds Account. Promptly after the date hereof, the Company shall establish and thereafter maintain with the Collateral Agent a segregated trust account for the purpose of depositing any proceeds from any disposition of Collateral pursuant to the terms of this Agreement or the Security Instruments (the "COLLATERAL PROCEEDS ACCOUNT"). During the continuation of a Major Default, the Collateral Agent shall, at the direction of the Directing Creditors, withdraw funds in the Collateral Proceeds Account and pay the same to the Secured Creditors for application toward the reduction or discharge of the Secured Obligations, as set forth in this SECTION 14.

Collateral Proceeds Account. Promptly after the date hereof, the Company shall establish and thereafter maintain with the Collateral Agent a segregated trust account for the purpose of depositing any proceeds from any disposition of Collateral pursuant to the terms of this Agreement or the Security Instruments (the "COLLATERAL PROCEEDS ACCOUNT"). During the continuation of a Major Default, the Collateral Agent shall, at the direction of the Directing Creditors, withdraw funds in the Collateral Proceeds Account and pay the same to the Secured Creditors for application toward the reduction or discharge of the Secured Obligations, as set forth in this SECTION 1415.