Lockbox Method Sample Clauses

The Lockbox Method clause establishes a process for handling payments by directing all incoming funds related to a specific agreement into a designated account, known as a lockbox. In practice, this means that customers or third parties make payments directly to the lockbox, where the funds are collected and then distributed according to the terms of the agreement, often to ensure that lenders or other stakeholders are paid first. This clause is primarily used to secure and control the flow of funds, reducing the risk of misappropriation and ensuring that obligations are met in a timely and transparent manner.
Lockbox Method. Under the Lockbox Method, M▇▇▇▇▇▇▇ agrees to deposit all Future Receipts into a special bank account established jointly by Purchaser and Merchant in accordance with a lockbox arrangement among Merchant, Purchaser and a banking institution chosen by Purchaser (the “Lockbox Account”), and Purchaser shall debit each week the Weekly Delivery Amount from the Lockbox Account.
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Related to Lockbox Method

  • Lockbox Account Each Obligor has been, or will be, directed to make all payments on their related Receivable to the Lockbox Account.

  • Lockbox The Secured Party may, by notice to the Debtor, require the Debtor to direct each of its account debtors to make payment directly to a special lockbox to be under the control of the Secured Party. The Debtor hereby authorizes and directs the Secured Party to deposit all checks, drafts and cash payments received in said lockbox into the collateral account established as set forth above.

  • Income Collection, Transaction Processing, Account Administration of a basis point per annum on the average net assets of the Fund.