Common use of Collection of Collateral and Notice of Assignment Clause in Contracts

Collection of Collateral and Notice of Assignment. 7.1 Collections on Collateral. So long as the Bank does not request that the Debtors on the Collateral be notified of the consignment thereof to Bank or that all collections be directed to a lock box at Bank, Borrower may make collections on the Collateral. All collections on the Collateral shall be the property of the Bank, shall be held in trust for the Bank by the Borrower and shall not be commingled with the Borrower's other funds or be deposited in any bank account of the Borrower (except for the Cash Collateral Account), or used in any manner except to pay the Obligations. Borrower shall immediately deposit all collections on the Collateral in the Cash Collateral Account of Borrower maintained at Bank for that purpose, over which the Bank alone shall have the sole power of withdrawal. On a daily basis, Bank will apply all or part of the collected balance of the Cash Collateral Account against the Obligations, the amount, order and method of such application to be in the sole discretion of Bank. In no event shall Bank be obligated to apply any funds deposited in the Cash Collateral Account before the second business day after the day of deposit. Any part of the collected balance in the Cash Collateral Account which the Bank elects not to apply to Borrower's obligations may be paid over and deposited by Bank to the Borrower's commercial account. The crediting of items deposited in the Cash Collateral Account to the reduction of the Obligations shall be conditioned upon final payment of the item and if any item is not so paid, the amount of any credit given for it may be charged to the Obligations or to any other deposit account of the Borrower whether or not the item is returned.

Collection of Collateral and Notice of Assignment. 7.1 Collections on Collateral. So long as the Bank does not request ------------------------- that the Debtors on the Collateral be notified of the consignment thereof to Bank or that all collections be directed to a lock box at Bank, Borrower may make collections on the Collateral. All collections on the Collateral shall be the property of the Bank, shall be held in trust for the Bank by the Borrower and shall not be commingled with the Borrower's other funds or be deposited in any bank account of the Borrower (except for the Cash Collateral Account), or used in any manner except to pay the Obligations. Borrower shall immediately deposit all collections on the Collateral in the Cash Collateral Account of Borrower maintained at Bank for that purpose, over which the Bank alone shall have the sole power of withdrawal. On a daily basis, Bank will apply all or part of the collected balance of the Cash Collateral Account against the Obligations, the amount, order and method of such application to be in the sole discretion of Bank. In no event shall Bank be obligated to apply any funds deposited in the Cash Collateral Account before the second business day after the day of deposit. Any part of the collected balance in the Cash Collateral Account which the Bank elects not to apply to Borrower's obligations may be paid over and deposited by Bank to the Borrower's commercial account. The crediting of items deposited in the Cash Collateral Account to the reduction of the Obligations shall be conditioned upon final payment of the item and if any item is not so paid, the amount of any credit given for it may be charged to the Obligations or to any other deposit account of the Borrower Borrower, whether or not the item is returned.

Collection of Collateral and Notice of Assignment. 7.1 Collections on Collateral. So long as the Bank does not request that the Debtors on the Collateral be notified of the consignment thereof to Bank or that all collections be directed to a lock box at Bank, Borrower may make collections on the Collateral. All collections on the Collateral shall be the property of the Bank, shall be held in trust for the Bank by the Borrower and shall not be commingled with the Borrower's other funds or be deposited in any bank account of the Borrower (except for the Cash Collateral Account), or used in any manner except to pay the Obligations. Borrower shall immediately deposit all collections on the Collateral in the Cash Collateral Account of Borrower maintained at Bank for that purpose, over which the Bank alone shall have the sole power of withdrawal. On a daily basis, Bank will apply all or part of the collected balance of the Cash Collateral Account against the Obligations, the amount, order and method of such application to be in the sole discretion of Bank. In no event shall Bank be obligated to apply any funds deposited in the Cash Collateral Account before the second first business day after the day of deposit. Any part of the collected balance in the Cash Collateral Account which the Bank elects not to apply to Borrower's obligations may be paid over and deposited by Bank to the Borrower's commercial account. The crediting of items deposited in the Cash Collateral Account to the reduction of the Obligations shall be conditioned upon final payment of the item and if any item is not so paid, the amount of any credit given for it may be charged to the Obligations or to any other deposit account of the Borrower Borrower, whether or not the item is returned.