Common use of Maintain Collateral Clause in Contracts

Maintain Collateral. The Credit Parties shall: (a) keep the Collateral in good order and repair (ordinary wear and tear and insured casualty excepted); (b) not suffer or cause the waste or destruction of any material part of the Collateral; (c) not use any of the Collateral in violation in any material respect of any policy of insurance thereon; (d) maintain a system to ensure that, with respect to sales of pharmacy Inventory (such as prescriptions, pharmaceuticals, medications and controlled substances) giving rise to rights to payment from any third-party payor insurance companies, managed care organizations, government entities, pharmacy plans (or the pharmacy plan administrators of such companies, organizations or entities), which are Pharmacy Accounts and with whom the Credit Parties do not have an existing contractual relationship, (i) each purchaser of pharmacy Inventory executes an assignment of benefits form (assigning reimbursement rights to the Lead Borrower) and (ii) copies of such assignments are sent to all such third-party payors, it being understood that the term "third-party payor" in this clause (d) shall not include any retail purchaser of such pharmacy Inventory. (e) not sell, lease, or otherwise dispose of any of the Collateral, other than the following: (i) the sale of Inventory in the ordinary course of business or in compliance with this Agreement; and (ii) the turning over to the Administrative Agent of all Receipts during the existence of a Cash Control Event as provided herein.