Common use of Collection of Accounts and Application to Revolving Note Clause in Contracts

Collection of Accounts and Application to Revolving Note. (a) The Collection Account. Company has granted a security interest to ▇▇▇▇▇ Fargo in the Collateral, including without limitation, all Accounts. Except as otherwise agreed by both parties in an Authenticated Record, all Proceeds of Accounts and other Collateral, upon receipt or collection, shall be deposited each Business Day into (i) with respect to Proceeds of Accounts owned by Parent prior to the Lockbox Transfer Date, the Comerica Collection Account, (ii) with respect to Proceeds of Accounts owned by Parent on and after the Lockbox Transfer Date, the Collection Account, (iii) with respect to Proceeds of Accounts owned by ▇▇ ▇▇▇▇▇▇▇ prior to the ▇▇ ▇▇▇▇▇▇▇ Lockbox Commencement Date, the ▇▇ ▇▇▇▇▇▇▇ Operating Account and (iv) with respect to Proceeds of Accounts owned by ▇▇ ▇▇▇▇▇▇▇ on and after the ▇▇ ▇▇▇▇▇▇▇ Lockbox Commencement Date, the ▇▇ ▇▇▇▇▇▇▇ Collection Account. Each of the Comerica Collection Account and the ▇▇ ▇▇▇▇▇▇▇ Collection Account and all funds therein shall at all times be subject to an account control agreement in form and substance acceptable to ▇▇▇▇▇ Fargo in its Permitted Discretion providing for ▇▇▇▇▇ Fargo’s control over such account and further that (i) all items of payment received therein are received by the applicable depository bank for ▇▇▇▇▇ Fargo, (ii) the applicable depository bank has no right of setoff and recoupment of any claim against such account or amounts held therein (other than for payment of its service fees and other charges directly related to the administration of such account and/or related lock-box), and (iii) the applicable depository bank will deposit all available collections and amounts therein to the ▇▇▇▇▇ Fargo Account on a daily basis. At all times prior to the ▇▇ ▇▇▇▇▇▇▇ Lockbox Commencement Date, ▇▇ ▇▇▇▇▇▇▇ shall cause the applicable depository bank to deposit on a weekly basis, all available collections and amounts held in the ▇▇ ▇▇▇▇▇▇▇ Operating Account to (1) the ▇▇▇▇▇ Fargo Account prior to the Lockbox Transfer Date and (2) the Collection Account on and after the Lockbox Transfer Date. Funds deposited into the ▇▇▇▇▇ Fargo Account, the ▇▇ ▇▇▇▇▇▇▇ Collection Account or the Collection Account, as applicable (“Account Funds”), are the property of Parent or ▇▇ ▇▇▇▇▇▇▇, as applicable, and are subject to the security interest of ▇▇▇▇▇ Fargo. Such Account Funds may only be withdrawn from the Collection Account by ▇▇▇▇▇ Fargo for application to payment of Indebtedness as set forth herein.