Common use of Collection by Buyer Clause in Contracts

Collection by Buyer. Upon the purchase of the Purchased Receivables, Buyer shall have full power and authority to ask for, demand, take, collect, ▇▇▇ for and receive all payments in respect of the obligations which Seller, except for the execution hereof, could ask for, demand, take, collect, ▇▇▇ for ad receive for its own use, and to enforce all rights and remedies thereunder which Seller could enforce if this Agreement had not been made and Seller hereby ratifies any actions which Buyer shall lawfully take to enforce its rights hereunder; PROVIDED that Buyer shall not exercise such power or authority prior to the occurrence of an Event of Default, except on prior written notice to Seller. Without limiting the foregoing, Buyer may enforce the payment of each of the Purchased Receivables in its own name or in the name of Seller, and may endorse the name of the Seller on all checks, drafts, money orders and other instruments tendered to or received in payment of any such Purchased Receivables. Seller hereby authorizes Buyer to notify any and all Account Debtors with respect to such Purchased Receivables of the purchase and sale contemplated hereby, and to cause all payments in respect thereof to be made directly to Buyer. Whether or not Buyer shall have so notified any Account Debtors, upon Buyer's request the Seller shall at its expense so notify the Account Debtors, cause all payments in respect thereof to be made directly to Buyer and render all reasonable assistance to Buyer in collecting such items and in enforcing claims thereof. All sums collected or received and all property recovered and possessed by Buyer in connection with the Purchased Receivables shall belong to Buyer absolutely. All sums collected or received and all property recovered or possessed by the Seller in connection with Purchased Receivables shall be received and held by the Seller in trust for and on Buyer's behalf; and upon receipt of any such sum or property, Seller shall forthwith deliver the same to Buyer, or upon its order. In connection with its obligations under this SECTION 3.2, Seller agrees to execute such instruments (including without limitation applications to governmental authorities for the delivery of mail through an agent) and to adopt such procedures, including the appointment of trustees of the institution of depositary or collateral account procedures, as Buyer may from time to time request, to provide for the direct collection by it of amounts due under the Purchased Receivables.

Collection by Buyer. Upon (a) Seller shall, at any time and from time to time, on Buyer's request, give written notice to each Account Debtor that the purchase Purchased Receivables have been sold, transferred and assigned to Buyer, and directing that all payments on the Purchased Receivable be made to the Buyer or as the Buyer shall direct. Said written notice shall be on Buyer's standard form. (b) At any time and from time to time, at Buyer's option (but without obligation), Buyer shall have the right to handle exclusively, and make all decisions with respect to, the collection of the Purchased Receivables, provided that, on request of Buyer, Seller shall take such SILICON VALLEY BANK AMENDMENT TO PURCHASE AGREEMENT actions as Buyer shall have full power and authority form time to ask fortime request, demand, take, collect, ▇▇▇ for and receive all payments in respect of order to collect or assist in the obligations which Seller, except for the execution hereof, could ask for, demand, take, collect, ▇▇▇ for ad receive for its own use, and to enforce all rights and remedies thereunder which Seller could enforce if this Agreement had not been made and Seller hereby ratifies any actions which Buyer shall lawfully take to enforce its rights hereunder; PROVIDED that Buyer shall not exercise such power or authority prior to the occurrence of an Event of Default, except on prior written notice to Seller. Without limiting the foregoing, Buyer may enforce the payment of each collection of the Purchased Receivables on behalf of Buyer. Until Buyer exercises its right to handle exclusively the collection of the Purchased Receivables, Seller shall collect the Purchased Receivables on behalf of Buyer and will use diligence and commercially reasonable means to collect Purchased Receivables on behalf of Buyer. Buyer shall have no obligation to commence or prosecute any litigation to collect any Purchased Receivable and all actions and decisions as to the method and manner of collection of Purchased Receivables shall be a matter of Buyer's own discretion and business judgment. (c) If Seller is collecting the Purchased Receivables under clause (b) above, Seller will remit all payments and collections on Purchased Receivables to Buyer on the last business day of each week (`Settlement Date') starting the week after the Purchase Date, and, on each Settlement Date Seller shall deliver to Buyer a written report, in its form acceptable to Buyer, of account activity (including dates and amounts of payments) and changes with respect to each Purchased Receivable. (d) If Buyer is collecting the Purchased Receivables under clause (b) above, and for any reason any payment on a Purchased Receivable, or any other proceeds of a Purchased Receivable, shall come into Seller's possession or control, Seller shall hold the same in trust for Buyer and shall deliver the same to Buyer, in the same form as received, with any necessary endorsements within one business day after receipt of the same. (e) Seller shall deliver to Buyer any instrument or chattel paper evidencing a Purchased Receivable. (f) Buyer shall have the right, at any time and from time to time, to verify with the Account Debtors all Purchased Receivables and all receivables offered to Buyer for purchase, in Buyer's own name or in the name of the Seller, and may endorse the name of the Seller on all checksor a nominee name, draftsorally, money orders and in writing, by email, by other instruments tendered to written confirmation or received in payment of any such Purchased Receivables. Seller hereby authorizes Buyer to notify any and all Account Debtors with respect to such Purchased Receivables of the purchase and sale contemplated hereby, and to cause all payments in respect thereof to be made directly to Buyer. Whether or not Buyer shall have so notified any Account Debtors, upon Buyer's request the Seller shall at its expense so notify the Account Debtors, cause all payments in respect thereof to be made directly to Buyer and render all reasonable assistance to Buyer in collecting such items and in enforcing claims thereof. All sums collected or received and all property recovered and possessed other means selected by Buyer in connection with its discretion. (g) Seller, at Buyer's request, shall commence and prosecute legal proceedings for the collection of Purchased Receivables shall belong to Buyer absolutely. All sums collected or received and all property recovered or possessed by the Seller in connection with Purchased Receivables shall be received and held by the Seller in trust for and on its name (as Buyer's behalf; and upon receipt of assignee for collection or enforcement) or, at Buyer's option, in Buyer's name. Seller will not make Buyer a party to any such sum litigation or property, Seller shall forthwith deliver the same to arbitration without Buyer, or upon its order. In connection with its obligations under this SECTION 3.2, Seller agrees to execute such instruments (including without limitation applications to governmental authorities for the delivery of mail through an agent) and to adopt such procedures, including the appointment of trustees of the institution of depositary or collateral account procedures, as Buyer may from time to time request, to provide for the direct collection by it of amounts due under the Purchased Receivables's prior written consent."