Common use of Collection of Accounts and Other Proceeds Clause in Contracts

Collection of Accounts and Other Proceeds. The Company, at its expense, will enforce and collect payments and other amounts owing on all of its Accounts in the ordinary course of the Company’s business subject to the terms hereof. The Company agrees to direct all of its account debtors to send payments on all of its Accounts directly to a lockbox associated with a Depository Account, and to include on all of the Company’s invoices the address of such a lockbox as the sole address for remittance of payment. Notwithstanding the foregoing, should the Company or any other Credit Party ever receive any payment on an Account or other Proceeds of the sale of Collateral, including checks, cash, receipts from credit card sales and receipts, notes or other instruments or property with respect to any Collateral, such Credit Party agrees to hold such proceeds in trust for Lender and CIT (subject to the terms of the Contrarian Intercreditor Agreement), separate from such Credit Party’s other property and funds, and to deposit such proceeds directly into a Depository Account within one (1) Business Day after receipt.

Collection of Accounts and Other Proceeds. The Company, at its expense, will enforce and collect payments and other amounts owing on all of its Accounts in the ordinary course of the Company’s business subject to the terms hereof. The Company agrees to direct all of its account debtors to send payments on all of its Accounts directly to a lockbox associated with a Depository Account, and to include on all of the Company’s invoices the address of such a lockbox as the sole address for remittance of payment. Notwithstanding the foregoing, should the Company or any other Credit Party ever receive any payment on an Account or other Proceeds of the sale of Collateral, including checks, cash, receipts from credit card sales and receipts, notes or other instruments or property with respect to any Collateral, such Credit Party agrees to hold such proceeds in trust for Lender the Agent, for the benefit of the Lenders (and CIT (Contrarian, subject to the terms of the Contrarian Intercreditor Agreement), separate from such Credit Party’s other property and funds, and to deposit such proceeds directly into a Depository Account within one (1) Business Day after receipt.