Common use of Proceeds of Accounts Clause in Contracts

Proceeds of Accounts. If so requested by the Agent (acting at the direction of the Required Secured Parties) at any time after the occurrence and during the continuance of an Event of Default, the Company shall instruct all account debtors in respect of Accounts, Chattel Paper and General Intangibles and all obligors on Instruments to make all payments in respect thereof either directly to the Agent or any bank in the United States of America specified by the Agent under arrangements, in form and substance satisfactory to the Agent, pursuant to which the Company shall have irrevocably instructed such other bank (and such other bank shall have agreed) to remit all proceeds of such payments directly to the Collateral Account. All payments made to the Agent as provided in the preceding sentence, shall be immediately deposited in the Collateral Account. In addition to the foregoing, the Company agrees that, at any time after the occurrence and during the continuance of an Event of Default, if the proceeds of any Collateral hereunder shall be received by it, the Company shall, upon the request of the Agent (acting at the direction of the Required Secured Parties), as promptly as possible deposit such proceeds into the Collateral Account. Until so deposited, all such proceeds shall be held in trust by the Company for and as the property of the Secured Parties and shall not be commingled with any other funds or property of the Company.