Common use of Payments on Collateral Clause in Contracts

Payments on Collateral. If it shall receive from any Person any amounts with respect to the Collateral, then, in accordance with this Agreement and the other Transaction Documents, it shall receive such payment in trust for the Agent (as secured party hereunder and under the other Transaction Documents) and from and after the occurrence and continuance of an Event of Default or as otherwise provided in the Transaction Documents, it shall immediately remit such amounts to the Agent.

Appears in 2 contracts

Sources: Credit Agreement (TBS International LTD), Credit Agreement (TBS International LTD)