Collections of Accounts Clause Samples

The "Collections of Accounts" clause defines the procedures and responsibilities related to collecting payments on accounts receivable. Typically, this clause outlines which party is authorized to pursue collection efforts, how collected funds are to be handled, and any reporting or remittance obligations. For example, it may specify that the seller must forward all payments received to the buyer or that the buyer assumes responsibility for all collection activities after a sale. The core function of this clause is to ensure clarity and prevent disputes over who controls and benefits from the collection of outstanding accounts, thereby protecting the interests of both parties in transactions involving receivables.
Collections of Accounts. The Borrower hereby authorizes the Bank, now and at any time or times hereafter, to (a) notify any or all account debtors that the Accounts Receivable have been assigned to the Bank and that the Bank has a security interest therein and (b) direct such account debtors to make all payments due from them to the Borrower upon the Accounts Receivable directly to the Bank or to a lockbox designated by the Bank. Until such time as the Bank shall exercise such rights, the Borrower shall collect and enforce all of its Accounts Receivable. The costs of collection and enforcement of the Accounts Receivable shall be borne by the Borrower, whether such costs are incurred by the Borrower or the Bank. All collections and proceeds of the Accounts Receivable and other Collateral shall be held in trust for the Bank, separate and apart from other funds and properties of the Borrower, and shall be promptly delivered by the Borrower to the Bank in the form in which they are received by the Borrower (except for any necessary endorsement in favor of the Bank) by mailing or delivering the same to the Bank not later than the business day following receipt thereof by the Borrower. The Bank will, within two (2) business days after receipt of checks and one business day after receipt of cash and cash equivalents, apply the whole or any part of such collections against the Borrower's liabilities to the Bank. All checks, drafts, instruments, and other items of payment or proceeds of Collateral shall be endorsed by the Borrower to the order of the Bank. The Borrower irrevocably constitutes and appoints the Bank and all persons designated by the Bank as the true and lawful agent and attorney-in-fact to endorse the Borrower's name to any payment or proceeds of Collateral.
View SourceView Similar (2)
Collections of Accounts. In the event that at the end of the six-month period following the Closing the aggregate amount realized from collection of the Closing Accounts Receivable is less than $3,804,668, notwithstanding reasonable diligence consistent with industry practice to collect such accounts by PSC Management under the MSAs, Sellers (jointly and severally) shall pay Parent upon delivery to the Paying Agent of notice of the amount of such shortfall and a reconciliation with respect thereto, cash in an amount equal to the shortfall. If not paid within one (1) day of delivery, at PSC's election any such shortfall may be offset (without regard to the limitations set forth in Section 8.5(a) or 8.6) against the amounts payable by Parent, PSC, or PSC Management to the Sellers under (i) any MSA and/or (ii) the PSC Debenture. Following any such payment or offset, Parent, PSC and PSC Management shall assign to the Paying Agent for the benefit of the Sellers the remaining uncollected Closing Accounts Receivable. Following any such offset pursuant to Section 7.7, in the event the Sellers dispute such offset, the dispute shall be resolved in accordance with Section 10.20 hereof. Any amount realized from the collection of the Closing Accounts Receivable at the end of the six month period following the Closing Date in excess of $3,804,668 shall be remitted to the Paying Agent for the benefit of the Sellers.
View SourceView Similar (2)
Collections of Accounts. As provided in the Loan Agreement, all collections of Accounts shall be remitted to the Bank. Promptly following receipt by Bank of such collections in immediately available funds, Bank shall apply the same to the Obligations in such order as Bank shall determine, provided that Bank shall instead deposit the same into Borrower’s operating account at Bank, if (i) no Default or an Event of Default has occurred and is continuing, and (ii) Borrower has Advances available to it under the formulas and provisions of this Loan Agreement of at least $1,000,000, as confirmed by the latest Transaction Report received by the Bank.
View Source
Collections of Accounts. As between IBM Credit and DFS, DFS shall have the sole right to collect and liquidate all sums owed by account debtors at all times, including without limitation following the receipt of a Notice. Until receipt by DFS of a Notice from IBM Credit, DFS shall have the right to apply any and all monies, reserves and proceeds received or collected by DFS with respect to accounts to any indebtedness owed to DFS. As between IBM Credit and DFS, during the period following the receipt by DFS of a Notice from IBM Credit, DFS shall hold, subject to applicable law, including bankruptcy law, the first collections of accounts receivable collected by DFS after receipt of a Notice from IBM Credit, up to the amount of the IBM Credit Account Portion, for the benefit of IBM Credit. Upon receipt by DFS of a notice from IBM Credit certifying that the representations and warranties set forth in Section 9 hereof are true and correct, DFS shall, subject to applicable law, including bankruptcy law, distribute to IBM Credit, within five (5) business days of receipt of such notice, the IBM Credit Account Portion. For purposes hereof, the "IBM Credit Account Portion" shall mean an amount equal to the lesser of: (a) Two Million Dollars ($2,000,000.00) or (b) the then outstanding amount of Dealer's obligations to IBM Credit as of the Determination Date.
View Source
Collections of Accounts. Until contrary notice is given by the Secured Party, the Debtor is specifically authorized to enforce and collect the Collateral described in Section 3(c) above in such manner as shall be commercially reasonable, to accept the return of goods and to reclaim, withhold or repossess goods as an unpaid seller. Until receipt of such notice, the Debtor agrees to collect the payments upon or from said Collateral, at the Debtor's expense, with due diligence. Upon notification by the Secured Party to the Debtor after the occurrence and during the continuation of an Event of Default to cease collecting upon said Collateral, the Secured Party will proceed to collect said Collateral in a commercially reasonable manner and may deduct from the proceeds its reasonable expenses of collection. Secured Party is authorized to receive in full satisfaction of any obligor's obligation to the Debtor a commercially reasonable sum less than the face amount thereof. The Debtor agrees that if any sums are received by it in respect to the Collateral after such notification by the Secured Party, such sums shall be received in trust by the Debtor and immediately shall be paid over by the Debtor to the Secured Party. The Debtor agrees to hold the Secured Party harmless from any claim, loss or damage caused by any failure to collect any obligation or to enforce any contract or by any act or omission on the part of the Secured Party, its agents and employees, relating to the Collateral except for Secured Party's willful misconduct or gross negligence. The covenant set forth in the preceding sentence shall survive the termination of this Agreement.
View Source
Collections of Accounts. In the event that during the twelve-month period following the Closing the amount realized from collection of the Closing Accounts Receivable is less than 500,000, then in addition to and not in lieu of any other rights it may have under this Agreement or any other agreement with Sellers or the Corporations or under law, the Sellers shall pay Parent upon demand cash in an amount equal to the shortfall, or, at Parent's election any such shortfall may be offset against the amounts payable by Parent to the Sellers under the Convertible Notes or the Contingent Promissory Note. Following any such payment or offset and immediately upon receipt by Parent or its affiliates of $500,000, Parent and SFO shall assign to the Sellers the remaining uncollected Closing Accounts Receivable. Parent or SFO shall immediately remit to Sellers any collections received within the twelve-month period following the Closing with respect to the Closing Accounts Receivable in excess of $500,000.
View Source
Collections of Accounts. Collections of Accounts of the Borrowers shall be administered as provided by the Security Agreement. Unless otherwise agreed by the Agent in its discretion, collections of Accounts of the Loan Parties other than the Borrowers shall be transferred daily to a Payment Account maintained with the Agent, an Affiliate of the Agent or other financial institution acceptable to the Agent, subject to a Blocked Account Agreement satisfactory to the Agent, which shall provide for sweeps of Collateral proceeds to the Agent on terms satisfactory to the Agent.
View Source

Related to Collections of Accounts

  • Collection of Accounts (a) Borrower shall establish and maintain, at its expense, blocked accounts or lockboxes and related blocked accounts (in either case, "Blocked Accounts"), as Lender may specify, with such banks as are acceptable to Lender into which Borrower shall promptly deposit and direct its account debtors to directly remit all payments on Accounts and all payments constituting proceeds of Inventory or other Collateral in the identical form in which such payments are made, whether by cash, check or other manner. The banks at which the Blocked Accounts are established shall enter into an agreement, in form and substance satisfactory to Lender, providing that all items received or deposited in the Blocked Accounts are the property of Lender, that the depository bank has no lien upon, or right to setoff against, the Blocked Accounts, the items received for deposit therein, or the funds from time to time on deposit therein and that the depository bank will wire, or otherwise transfer, in immediately available funds, on a daily basis, all funds received or deposited into the Blocked Accounts to such bank account of Lender as Lender may from time to time designate for such purpose ("Payment Account"). Borrower agrees that all payments made to such Blocked Accounts or other funds received and collected by Lender, whether on the Accounts or as proceeds of Inventory or other Collateral or otherwise shall be the property of Lender. (b) For purposes of calculating the amount of the Loans available to Borrower, such payments will be applied (conditional upon final collection) to the Obligations on the business day of receipt by Lender of immediately available funds in the Payment Account provided such payments and notice thereof are received in accordance with Lender's usual and customary practices as in effect from time to time and within sufficient time to credit Borrower's loan account on such day, and if not, then on the next business day. For the purposes of calculating interest on the Obligations, such payments or other funds received will be applied (conditional upon final collection) to the Obligations one (1) business day following the date of receipt of immediately available funds by Lender in the Payment Account provided such payments or other funds and notice thereof are received in accordance with Lender's usual and customary practices as in effect from time to time and within sufficient time to credit Borrower's loan account on such day, and if not, then on the next business day. (c) Borrower and all of its affiliates, subsidiaries, shareholders, directors, employees or agents shall, acting as trustee for Lender, receive, as the property of Lender, any monies, checks, notes, drafts or any other payment relating to and/or proceeds of Accounts or other Collateral which come into their possession or under their control and immediately upon receipt thereof, shall deposit or cause the same to be deposited in the Blocked Accounts, or remit the same or cause the same to be remitted, in kind, to Lender. In no event shall the same be commingled with Borrower's own funds. Borrower agrees to reimburse Lender on demand for any amounts owed or paid to any bank at which a Blocked Account is established or any other bank or person involved in the transfer of funds to or from the Blocked Accounts arising out of Lender's payments to or indemnification of such bank or person. The obligation of Borrower to reimburse Lender for such amounts pursuant to this Section 6.3 shall survive the termination or non-renewal of this Agreement.

  • Payment of Accounts (a) Company will irrevocably direct all of its present and future Account Debtors and other Persons obligated to make payments constituting Collateral to make such payments directly to the lockbox maintained by Company (the "Lockbox") with ▇▇▇▇▇ Fargo pursuant to the terms of the Clearing Account Agreement dated August , 2003 among the Company, Laurus and ▇▇▇▇▇ Fargo Bank, (the "Lockbox Agreement")or such other financial institution accepted by Laurus in writing as may be selected by Company (the "Lockbox Bank"). On or prior to the Closing Date, Company shall and shall cause the Lockbox Bank to enter into all such documentation acceptable to Laurus pursuant to which, among other things, the Lockbox Bank agrees to: (a) sweep the Lockbox on a daily basis and deposit all checks received therein to an account designated by Laurus in writing and (b) comply only with the instructions or other directions of Laurus concerning the Lockbox. All of Company's invoices, account statements and other written or oral communications directing, instructing, demanding or requesting payment of any Account of Company or any other amount constituting Collateral shall conspicuously direct that all payments be made to the Lockbox or such other address as Laurus may direct in writing. If, notwithstanding the instructions to Account Debtors, Company receives any payments, Company shall immediately remit such payments to Laurus in their original form with all necessary endorsements. Until so remitted, Company shall hold all such payments in trust for and as the property of Laurus and shall not commingle such payments with any of its other funds or property. Company shall pay Laurus five percent (5%) of the amount of any payment so received by Company and not delivered in kind to Laurus within five (5) Business Days following Company's receipt thereof. (b) At Laurus' election, following the occurrence of an Event of Default, Laurus may notify Company's Account Debtors of Laurus' security interest in the Accounts, collect them directly and charge the collection costs and expenses thereof to Company's account.

  • Collection of Accounts Receivable At the Closing, the Seller will turn over to the Buyers, for collection only, the accounts receivable of the Station owing to the Seller as of the close of business on the Closing Date. A schedule of such accounts receivable will be delivered by the Seller to the Buyers on the Closing Date or as soon thereafter as possible. The Buyers agree to use commercially reasonable efforts in the ordinary course of business (but without responsibility to institute legal or collection proceedings) to collect such accounts receivable during the 120-day period following the Closing Date, and will remit all payments received on such accounts during each calendar month during this 120-day period on the one hundred twentieth (120th) day together with an accounting of all payments received within such period. The Buyers shall have the sole right to collect such accounts receivable during such one hundred twenty (120) day period. In the event the Buyers receive monies during the 120-day period following the Closing Date from an advertiser who, after the Closing Date, is advertising over any of the Station, and that advertiser was included among the accounts receivable as of the Closing Date, the Buyer shall apply said monies to the oldest outstanding balance due on the particular account, except in the case of a "disputed" account receivable. For purposes of this Section 6(d), a "disputed" account receivable means one which the account debtor refuses to pay because he asserts that the money is not owed or the amount is incorrect. In the case of such a disputed account, the Buyers shall immediately return the account to the Seller prior to expiration of the 120-day period following the Closing Date. If the Buyers return a disputed account to the Seller, the Buyers shall have no further responsibility for its collection and may accept payment from the account debtor for advertising carried on any of the Station after the Closing Date. At the end of the 120-day period following the Closing Date, the Buyers will turn back to the Seller all of the accounts receivable of the Station as of the Closing Date owing to the Seller which have not yet been collected, and the Buyers will thereafter have no further responsibility with respect to the collection of such receivables. During the 120-day period following the Closing Date, the Buyers shall afford the Seller reasonable access to the accounts receivable "aging list." The Seller acknowledges and agrees that the Buyers are acting as its collection agent hereunder for the sole benefit of the Seller and that Buyers have accepted such responsibility for the accommodation of the Seller. The Buyer shall not have any duty to inquire as to the form, manner of execution or validity of any item, document, instrument or notice deposited, received or delivered in connection with such collection efforts, nor shall the Buyers have any duty to inquire as to the identity, authority or rights of the persons who executed the same. The Seller shall indemnify Buyers and hold them harmless from and against any judgments, expenses (including attorney's fees) costs or liabilities which the Buyers may incur or sustain as a result of or by reason of such collection efforts.

  • Types of Accounts Cash accounts opened on the books of the Custodian (Principal Accounts) shall be opened in the name of the Trust, coupled with the name of such Fund. Custodian shall hold all cash received by it for the account of the Trust or any Fund in accordance with Rule 17f-3 under the Act. Such accounts collectively shall be a deposit obligation of the Custodian and shall be subject to the terms of this Section 7 and the general liability provisions contained in this Agreement. Cash accounts opened on the books of a Sub-custodian may be opened in the name of the Trust or the Sub-custodian or in the name of its Sub-custodian for its customers generally (Agency Accounts). Such deposits shall be obligations of the Sub-custodian, and shall be treated as an Investment of the Trust. Accordingly, the Custodian shall be responsible for exercising reasonable care in the administration of such accounts but shall not be liable for their repayment in the event such Sub-custodian by reason of its bankruptcy, insolvency or otherwise, fails to make repayment through no fault of the Custodian.

  • Investment of Account Assets a. All contributions to the custodial account shall be invested in the shares of the ▇▇▇▇▇▇▇▇ Funds or, if available, any other series of ▇▇▇▇▇▇▇▇ Funds or other regulated investment companies for which ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ Capital Management serves as Investment Advisor or designates as being eligible for investment. Shares of stock of an Investment Company shall be referred to as “Investment Company Shares”. To the extent that two or more funds are available for investment, contributions shall be invested in accordance with the depositor’s investment election. b. Each contribution to the custodial account shall identify the depositor’s account number and be accompanied by a signed statement directing the investment of that contribution. The Custodian may return to the depositor, without liability for interest thereon, any contribution which is not accompanied by adequate account identification or an appropriate signed statement directing investment of that contribution. c. Contributions shall be invested in whole and fractional Investment Company Shares at the price and in the manner such shares are offered to the public. All distributions received on Investment Company Shares held in the custodial account shall be reinvested in like shares. If any distribution of Investment Company Shares may be received in additional like shares or in cash or other property, the Custodian shall elect to receive such distribution in additional like Investment Company Shares. d. All Investment Company Shares acquired by the Custodian shall be registered in the name of the Custodian or its nominee. The depositor shall be the beneficial owner of all Investment Company Shares held in the custodial account. e. The Custodian agrees to forward to the depositor each prospectus, report, notice, proxy and related proxy soliciting materials applicable to Investment Company Shares held in the custodial account received by the Custodian. By establishing or having established the custodial account, the depositor affirmatively directs the Custodian to vote any Investment Company Shares held on the applicable record date that have not been voted by the depositor prior to a shareholder meeting for which prior notice has been given. The Custodian shall vote with the management of the Investment Company on each proposal that the Investment Company’s Board of Directors has approved unanimously. If the Investment Company’s Board of Directors has not approved a proposal unanimously, the Custodian shall vote in proportion to all shares voted by the Investment Company’s shareholders. f. The depositor may, at any time, by written notice to the Custodian, redeem any number of shares held in the custodial account and reinvest the proceeds in the shares of any other Investment Company. Such redemptions and reinvestments shall be done at the price and in the manner such shares are then being redeemed or offered by the respective Investment Companies.