Common use of Trust Receipts Clause in Contracts

Trust Receipts. We acknowledge and agree that we will or have received in trust from Issuer documents, including but not limited to bills of lading, dock warrants, dock receipts, or warehouse receipts, from time to time covering Property which is collateral security for the Bank Liabilities. We acknowledge that Issuer entrusted or will entrust from time to time to us such documents to facilitate their ultimate sale or exchange or for the purpose of loading, unloading, storing, shipping, transshipping, manufacturing, processing or otherwise dealing with the Property covered by such document(s) in a manner preliminary to their sale or exchange. Upon any sale or exchange of any document, we will, upon Issuer's request, promptly remit to Issuer all cash and/or new documents received in the sale or exchange. Upon any sale or withdrawal of any Property for which the vendor was paid by use of a time draft under any Credit from warehouse storage into our inventory for sale and delivery in the ordinary course of our business, we will deliver to Issuer upon its request made at any time our Reimbursement Obligations for such time draft have become due and have not been paid in full (A) All cash from each such sale for application on the Bank Liabilities secured by such Property;