Common use of Proceeds and Collection of Accounts Held in Trust Clause in Contracts

Proceeds and Collection of Accounts Held in Trust. (a) The Bank hereby authorizes and permits each Borrower to receive from such Borrower’s Account Debtors all amounts due as proceeds of the Collateral at such Borrower’s own cost, risk, expense, and liability, subject always, however, to the provisions of this Agreement. (b) Each Borrower agrees that at Bank’s request while an Event of Default exists: (i) all account Collateral and all proceeds and collections of the Collateral shall be held in trust by the Borrowers for the Bank and shall not be commingled with any of any Borrower’s other funds or deposited in any bank account of any Borrower, (ii) such Borrower shall deliver to the Bank as and when received by such Borrower and in the same form as so received, all checks, drafts, letters of credit issued for the benefit of such Borrower, and other items which represent the Collateral and any proceeds and collections of the Collateral, each of which checks, drafts, letters of credit, and other items shall be endorsed to the Bank or as the Bank may otherwise specify from time to time and which shall be accompanied by remittance reports in form satisfactory to the Bank. In addition, during the existence of an Event of Default, each Borrower shall cause any wire or other electronic transfer of funds which constitutes Collateral or proceeds thereof to be directed to the Bank. The Bank may apply the proceeds thereof to the Obligations in such manner as the Bank may determine, in its discretion, (iii) at the Bank’s request, if an Event of Default exists, such Borrower shall cause all checks, drafts, letters of credit, and other items which represent the account Collateral and any proceeds and collections of the Collateral to be delivered by such Borrower’s Account Debtors directly to a lock box, blocked account, or similar recipient over which the Bank has sole access and control. The Bank may apply the proceeds and collections so delivered to the Obligations in such manner as the Bank may determine, in its discretion.

Proceeds and Collection of Accounts Held in Trust. (a) The Bank hereby authorizes and permits each the Borrower to receive from such the Borrower’s 's Account Debtors all amounts due as proceeds of the Collateral at such the Borrower’s 's own cost, risk, expense, and liability, subject always, however, to the provisions of this Agreement. (ba) Each The Borrower agrees that at Bank’s 's request while an Event of Default exists: (i) all account Collateral and all proceeds and collections of the Collateral shall be held in trust by the Borrowers Borrower for the Bank and shall not be commingled with any of any the Borrower’s 's other funds or deposited in any bank account of any the Borrower, (ii) such the Borrower shall deliver to the Bank as and when received by such the Borrower and in the same form as so received, all checks, drafts, letters of credit issued for the benefit of such the Borrower, and other items which represent the Collateral and any proceeds and collections of the Collateral, each of which checks, drafts, letters of credit, and other items shall be endorsed to the Bank or as the Bank may otherwise specify from time to time and which shall be accompanied by remittance reports in form satisfactory to the Bank. In addition, during the existence of an Event of Default, each the Borrower shall cause any wire or other electronic transfer of funds which constitutes Collateral or proceeds thereof to be directed to the Bank. The Bank may apply the proceeds thereof to the Obligations in such manner as the Bank may determine, in its discretion, (iii) at the Bank’s 's request, if an Event of Default exists, such the Borrower shall cause all checks, drafts, letters of credit, and other items which represent the account Collateral and any proceeds and collections of the Collateral to be delivered by such the Borrower’s 's Account Debtors directly to a lock box, blocked account, or similar recipient over which the Bank has sole access and control. The Bank may apply the proceeds and collections so delivered to the Obligations in such manner as the Bank may determine, in its discretion.