Collection of Accounts and Payments Sample Clauses
The 'Collection of Accounts and Payments' clause outlines the procedures and responsibilities for collecting payments owed under an agreement. It typically specifies how invoices are issued, the acceptable methods and timelines for payment, and the actions to be taken in the event of late or missed payments, such as the imposition of interest or collection efforts. This clause ensures that both parties understand their obligations regarding financial transactions, thereby reducing disputes and promoting timely payment.
Collection of Accounts and Payments. Within ninety (90) days after the Closing Date (and from time to time thereafter concurrently with the Borrower's establishment of any new bank accounts), Borrower shall establish blocked accounts (collectively, "BLOCKED ACCOUNTS") in Borrower's name with all banks at which it maintains deposit accounts ("COLLECTING BANKS") (subject to irrevocable instructions acceptable to Agent as hereinafter set forth) in which Borrower will immediately deposit all cash. The Collecting Banks shall acknowledge and agree, in a manner satisfactory to Agent, that all payments made to the Blocked Accounts are the sole and exclusive property of Agent, for the benefit of Lenders, and that the Collecting Banks have no right of setoff against the Blocked Accounts and that all such payments received will be promptly transferred to Agent's Account. Borrower hereby agrees that all payments received by Agent, whether by cash, check, wire transfer or any other instrument, made to such Blocked Accounts or otherwise received by Agent will be the sole and exclusive property of Agent, for the benefit of Lenders, to be applied in accordance with the provisions of this Agreement. Borrower shall, pursuant to a blocked account agreement substantially in the form of Exhibit F attached hereto, irrevocably instruct each Collecting Bank to promptly transfer all payments or deposits, at the request of Agent, to the Blocked Accounts into Agent's Account; provided, however, that Agent shall not direct the Collecting Banks to transfer payments from the Blocked Accounts to the Agent's Account unless and until: (a) one or more Revolving Advances is outstanding hereunder, and (b) the sum of (i) Borrower's cash on hand in immediately available funds, (ii) Borrower's Cash Equivalents, and (iii) Unused Availability is, at the time such direction is given, less than $15,000,000. Borrower, and any of its Affiliates, employees, agents or other Persons acting for or in concert with Borrower, shall, acting as trustee for Agent, receive, as the sole and exclusive property of Agent, any monies, checks, notes, drafts or any other payments which come into the possession or under the control of Borrower or any of Borrower's Affiliates, employees, agents or other Persons acting for or in concert with Borrower, and immediately upon receipt thereof, Borrower or such Persons shall remit the same or cause the same to be remitted, in kind, to the Blocked Accounts or to Agent at its address set forth in subsection 10.4 be...
Collection of Accounts and Payments. (a) Borrower will immediately deposit any and all remittances and proceeds of the Collateral in the identical form in which such payment was made, whether by cash or check in those depository accounts set forth on Exhibit L and identified thereon as Remote Depository Accounts. Borrower shall direct all Account Debtors (other than lay-away customers and customers participating in the fost▇▇ ▇▇▇ent voucher or similar programs) to remit all payments to one of the Remote Depository Accounts or the Special Deposit Account. Borrower shall grant to Lender a security interest in such Remote Depository Accounts, pursuant to the terms of a Remote Depository Account Agreement, in form and substance reasonably acceptable to Lender, which agreement shall provide, inter alia that all funds deposited into such Remote Depository Accounts shall be transferred each day to a deposit account (the "SPECIAL DEPOSIT ACCOUNT") with Texas Commerce Bank National Association, or such other banking institution as Lender shall reasonably approve (the "DEPOSITORY BANK"). Borrower shall grant to Lender a security interest in such Special Deposit Account pursuant to the terms of a Special Deposit Agreement pursuant to which all deposits will be wire transferred to Lender on a daily basis. Depository Bank shall acknowledge, in a manner satisfactory to Lender, that: (i) all payments made to such Special Deposit Account are the sole property of Lender; (ii) Borrower has no right to retain, receive or direct funds deposited therein, (iii) Depository Bank has no right of setoff against the funds in such Special Deposit Account; and (iv) Depository Bank will wire, or otherwise transfer, in a manner satisfactory to Lender, funds deposited in such Special Deposit Account to Lender on a daily basis as soon as such funds are collected.
(b) Lender will credit (conditional upon final collection) all payments received from the Special Deposit Account to the Loan Account. Borrower and any Affiliates, shareholder, directors, officers, employees, or agents of Borrower and all Persons acting for or in concert with Borrower shall, acting as trustee for Lender, receive, as the sole and exclusive property of Lender, any monies, checks, notes, drafts or any other payments relating to or proceeds of Accounts or other Collateral which come into their possession or under their control and immediately upon receipt thereof, shall remit the same or cause the same to be remitted, in kind, to Lender pursuant to the ...
Collection of Accounts and Payments. Each Borrower shall establish such lockboxes and depository accounts (collectively, "Blocked Accounts") with such banks as are reasonably acceptable to Administrative Agent to which all account debtors shall directly remit all payments on Accounts of Borrowers and in which Borrowers will immediately deposit all cash payments made for Inventory or other cash payments constituting proceeds of Collateral in the identical form in which such payment was made, whether by cash or check. TNFI shall cause TNF Canada to establish a lockbox for payment of its Accounts, and all funds shall be transferred to a Blocked Account. Prior to the occurrence of a Default or an Event of Default, Administrative Agent shall instruct the account banks to release all funds in the Blocked Accounts to the applicable Borrower. After the occurrence of a Default or an Event of Default which has not been cured, Administrative Agent may deliver a notice that all funds in the Blocked Accounts shall be transferred to Administrative Agent and, in such event, each Borrower hereby agrees that all payments received by Administrative Agent, whether by cash, check, wire transfer or any other instrument, made to such Blocked Accounts or otherwise received by Administrative Agent and whether on the Accounts or as proceeds of other Collateral or otherwise will be the sole and exclusive property of Administrative Agent for the benefit of Lenders. Each Borrower, and any of its Affiliates, employees, agents or other Persons acting for or in concert with it shall, acting as trustee for Administrative Agent, receive, as the sole and exclusive property of Administrative Agent, any monies, checks, notes, drafts or any other payments relating to and/or proceeds of Accounts or other Collateral which come into the possession or under the control of such Borrower or any of such Borrower's Affiliates, employees, agents or other Persons acting for or in concert with such Borrower, and immediately upon receipt thereof, such Borrower or such Persons shall remit the same or cause the same to be remitted, in kind, to the Blocked Accounts, Administrative Agent's Account or to Administrative Agent at its address set forth in Section 10.4 below.
Collection of Accounts and Payments. All payments made to the Remittance Accounts, the Lock Box Accounts or otherwise received by Bank whether on the Accounts or as proceeds of other Collateral or otherwise will be the sole and exclusive property of Bank and may be applied by Bank, after the occurrence and during the continuance of an Event of Default, on account of the Liabilities as follows: (a) for collection of checks and other instruments (including automatic clearing house electronic funds transfers and depository transfer checks) received by Bank at its offices in Chicago, Illinois, Bank will credit (conditional upon final collection) all such payments to the Revolving Loans on or before the second Business Day after such checks and other instruments are received by Bank when such funds become available “collected funds” in accordance with Bank’s customary practices, and (b) all cash payments received by Bank at its offices in Chicago, Illinois, including payments made by wire transfer of immediately available funds received by Bank in time for posting to the account of Bank on the date received, will be credited to the Revolving Loans on the same Business Day such payments are received by Bank; provided, however, at any time that the outstanding principal amount of the Revolving Loans is zero at the election of Bank: (i) if no Default has occurred and is continuing, such payments shall be applied to the operating account of the Company maintained at Bank, or (ii) if a Default has occurred and is continuing, such payments shall be applied to the Liabilities in such order as Bank shall determine in its sole discretion. After the occurrence and during the continuance of an Event of Default, Obligors shall, acting as trustee for Bank, receive, as the sole and exclusive property of Bank, any monies, checks, notes, drafts or any other payment relating to and/or proceeds of any Obligor’s Accounts or the other Collateral which come into the possession or under the control of Obligors, Obligors shall remit the same or cause the same to be remitted, in kind, to Bank, at Bank’s address set forth below. Borrowers jointly and severally agree to pay to Bank any and all fees, costs and expenses which Bank incurs in connection with opening and maintaining the Remittance Accounts and the Lock Box Accounts and depositing for collection by Bank any check or item of payment received and/or delivered to Bank on account of the Liabilities. Amounts applied by Bank to the principal of the Revolving Loan shal...
Collection of Accounts and Payments. Borrower will immediately deposit or cause the deposit of all remittances and proceeds of the Collateral in the identical form in which such payment was made, whether by cash or check, in special lock box account number 77-6132 with AMERICAN NATIONAL BANK, DEPT. 77-6132, CHI▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇ ("DEPOSITORY BANK"). Borrower agrees that all payments made to such special account or otherwise received by Lender, whether on the Accounts or as proceeds of other Collateral or otherwise, will be the sole and exclusive property of Lender and will be applied on account of the Liabilities. On the same Business Day of Lender's receipt of funds eligible to be wired from the Depository Bank, Lender will credit (conditional upon final collection) all payments received against the Liabilities. Borrower and any Affiliates, shareholders, directors, officers, employees, agents of Borrower and all Persons acting for or in concert with Borrower shall, acting as trustee for Lender, receive, as the sole and exclusive property of Lender, any monies, checks, notes, drafts or any other payments relating to or proceeds of Accounts or other Collateral which come into their possession or under their control and immediately upon receipt, shall remit the same or cause the same to be remitted, in kind, to Lender, at Lender's address set forth in Section 10.10. Borrower agrees to pay to Lender any and all fees, costs and expenses (if any) which Lender incurs in connection with opening and maintaining the special account and depositing for collection by Lender any check or item of payment received or delivered to Depository Bank or Lender on account of the Liabilities and Borrower further agrees to reimburse Lender for any claims asserted by Depository Bank in connection with the special account or any returned or uncollected checks received by Depository Bank for deposit in the special account.
Collection of Accounts and Payments. (a) A blocked account (the “Commercial Blocked Account”) shall have been established in the Borrower’s name with Administrative Agent, pursuant to which Administrative Agent shall have control over the Commercial Blocked Account in accordance herewith and with the Blocked Account Agreement, pursuant to which the Borrower shall direct all Account Debtors (other than Account Debtors obligated on Government Accounts) -45-
(a) each day’s available balance in respect of checks and other instruments received by the Administrative Agent in the Cash Collateral Account or otherwise at its offices in Chicago, Illinois will be credited by the Administrative Agent (conditional upon final collection) to the Borrower’s Loan Account and shall reduce outstandings on the Revolving Loans two (2) Business Days’ after receipt by the Administrative Agent, and (b) all cash payments received by the Administrative Agent in the Cash Collateral Account or otherwise at its offices in Chicago, Illinois, including, without limitation, payments made by wire transfer of immediately available funds received by the Administrative Agent, will be credited by the Administrative Agent to the Borrower’s Loan Account on the receipt of immediately available funds by the Administrative Agent. If during the period of such Default or Event of Default, the Borrower (or any director, officer, employee, affiliate, or agent thereof) shall receive any payment from any Account Debtor (other than an Account Debtor obligated on a Government Account), the Borrower hereby agrees that all such payments shall be the sole and exclusive property of the Administrative Agent (to the extent of the Liabilities), and the Borrower shall hold such payments in trust as the Administrative Agent’s trustee and immediately deliver said payments to the Cash Collateral Account established pursuant to this Section and shall be applied in accordance with this Section. The Borrower agrees to pay to the Administrative Agent any and all reasonable fees, costs and expenses which the Administrative Agent incurs in connection with opening and maintaining the Commercial Blocked Account, the Government Blocked Account and the Cash Collateral Account for the Borrower and depositing for collection by the Administrative Agent any check or item of payment received and/or delivered to the Administrative Agent on account of the Borrower’s Liabilities. The Borrower shall cooperate with the Administrative Agent in the identification and reconc...
Collection of Accounts and Payments. On or prior to the Closing Date, the Borrowers shall establish lock box accounts (the "Blocked Accounts") in the applicable Borrower's name with such banks as are acceptable to the Agent ("Collecting Banks") and enter into blocked account agreements among such Borrower, the Agent and each Collecting Bank (the "Blocked Account Agreements"
Collection of Accounts and Payments. 60 5.7 Endorsement. . . . . . . . . . . . . . . . . . . . . . . . . . 61 5.8 Corporate Existence . . . . . . . . . . . . . . . . . . . . . 61 5.9
Collection of Accounts and Payments. 18 4.4 .............................................Application of Payments and Collections.18
Collection of Accounts and Payments. Appointment of Agent as Borrower's Attorney-in-Fact....