Covenant Regarding New Deposit Accounts. Lock Boxes. Before opening or replacing any Collateral Deposit Account, other Deposit Account, or establishing a new Lock Box, each Grantor shall (a) obtain the Agent’s consent in writing to the opening of such Deposit Account or Lock Box, and (b) cause each bank or financial institution in which it seeks to open (i) a Deposit Account, to enter into a Deposit Account Control Agreement with the Agent in order to give the Agent Control of such Deposit Account, or (ii) a Lock Box, to enter into a Lock Box Agreement with the Agent in order to give the Agent Control of the Lock Box. In the case of Deposit Accounts or Lock Boxes maintained with Lenders, the terms of such letter shall be subject to the provisions of the Credit Agreement regarding setoffs.
Appears in 1 contract
Sources: Pledge and Security Agreement (Action Performance Companies Inc)
Covenant Regarding New Deposit Accounts. Lock Boxes. Before Prior to (or simultaneously with) opening or replacing any Collateral Deposit Account, Account or other Deposit Account, or establishing a new Lock BoxBox (other than any Lock Box established in accordance with Section 7.02(a)), each the relevant Grantor shall (a) obtain the Agent’s consent in writing to the opening of such Deposit Account or Lock Box, and (b) cause each bank or financial institution in which it seeks to open (i) a Deposit Account, to enter into a Deposit Account Control Agreement with the Agent in order to give the Agent Control of such Deposit Account, or (ii) a Lock Box, to enter into a Lock Box Agreement with the Agent in order to give the Agent Control of the Lock Box. In the case of Deposit Accounts or Lock Boxes maintained with Lenders, the terms of such letter shall be subject to the provisions of the Credit Agreement regarding setoffs.
Appears in 1 contract
Sources: Credit Agreement (Quiksilver Inc)