Common use of Notification of Claim against Collateral Clause in Contracts

Notification of Claim against Collateral. The Borrower will, promptly and in any event within five (5) Business Days following its becoming aware thereof, notify each of the Collateral Agent, the Agents and each of the Banks in writing of any setoff, claims (including, with respect to the Real Estate, environmental claims), withholdings or other defenses to which any of the Collateral, or the Collateral Agent's rights with respect to the Collateral, are subject to the extent that any such setoff, claims, withholdings or other defenses could reasonably be expected to result in liability to the Borrower and its Subsidiaries in excess of $250,000. The Borrower will, immediately upon receiving notice thereof, notify each of the Collateral Agent, the Agents and each of the Banks in writing of any proposed sale or transfer of any Borrower Permitted Inventory Location by the owner thereof.