USE AND COLLECTION OF COLLATERAL Clause Samples
The 'Use and Collection of Collateral' clause defines the rights and obligations of parties regarding the handling of collateral provided under an agreement. It typically outlines how the collateral may be used, maintained, or collected by the secured party, such as allowing the lender to take possession, sell, or otherwise realize the value of the collateral if the borrower defaults. This clause ensures that the secured party has clear authority to enforce their security interest, thereby protecting their ability to recover losses and providing assurance that the collateral can be effectively used to satisfy outstanding obligations.
USE AND COLLECTION OF COLLATERAL. 6.1. Use of Inventory Collateral ................................................62 6.2. Inventory Quality ..........................................................62 6.3. Adjustments and Allowances .................................................62 6.4.
USE AND COLLECTION OF COLLATERAL. 50 6-1. -Use of Inventory Collateral..............................50 6-2. -Inventory Quality........................................50 6-3. -Adjustments and Allowances...............................50 6-4. -Validity of Accounts.....................................50 6-5. -Notification to Account Debtors..........................51 ARTICLE 7-CASH MANAGEMENT. PAYMENT OF LIABILITIES............................51 7-1. -Depository Accounts......................................51 7-2. -Credit Card Receipts.....................................51 7-3. -The Concentration and the Funding Accounts...............51 7-4. -Proceeds and Collection of Accounts......................52 7-5. -Payment of Liabilities...................................52 7-6. -The Funding Account......................................53
USE AND COLLECTION OF COLLATERAL. 6-1. Use of Inventory Collateral 6-2. Inventory Quality 6-3. Adjustments and Allowances 6-4. Validity of Accounts 6-5. Notification to Account Debtors
USE AND COLLECTION OF COLLATERAL. 6-1. Use of Inventory Collateral 6-2. Inventory Quality 6-3. Adjustments and Allowances 6-4. Validity of Accounts 6-5. Notification to Account Debtors ARTICLE 7 - CASH MANAGEMENT 7-1. Depository Accounts 7-2. Credit Card Receipts 7-3. The Concentration Account, the Blocked Account and the Funding Accounts 7-4. Proceeds and Collection of Accounts 7-5. Payment of Liabilities 7-6. The Funding Account 7-7. Capital Infusions, Etc.
USE AND COLLECTION OF COLLATERAL. 6-1. Use of Inventory Collateral --------------------------- 6-2. Inventory Quality ----------------- 6-3. Adjustments and Allowances -------------------------- 6-4. Validity of Accounts -------------------- 6-5. Notification to Account Debtors -------------------------------
USE AND COLLECTION OF COLLATERAL. 27- 6-1. USE OF INVENTORY COLLATERAL..................................................................-27- 6-2. INVENTORY QUALITY............................................................................-27- 6-3. ADJUSTMENTS AND ALLOWANCES...................................................................-27- 6-4. VALIDITY OF ACCOUNTS.........................................................................-27- 6-5. NOTIFICATION TO ACCOUNT DEBTORS..............................................................-28- ARTICLE 7 - CASH MANAGEMENT..............................................................................-28- 7-1. DEPOSITORY ACCOUNTS..........................................................................-28- 7-2. CREDIT CARD RECEIPTS.........................................................................-29- 7-3. THE CONCENTRATION ACCOUNT, THE BLOCKED ACCOUNT AND THE FUNDING ACCOUNTS......................-29- 7-4. PROCEEDS AND COLLECTION OF ACCOUNTS..........................................................-30- 7-5. PAYMENT OF LIABILITIES.......................................................................-31- 7-6. THE FUNDING ACCOUNT..........................................................................-31- ARTICLE 8 - LENDER AS BORROWER'S ATTORNEY-IN-FACT........................................................-32- 8-1. APPOINTMENT AS ATTORNEY-IN-FACT..............................................................-32- 8-2. NO OBLIGATION TO ACT.........................................................................-32- ARTICLE 9 - FINANCIAL AND OTHER REPORTING REQUIREMENTS/FINANCIAL COVENANTS ............................................................-33- 9-1. MAINTAIN RECORDS.............................................................................-33- 9-2. ACCESS TO RECORDS............................................................................-33- 9-3. IMMEDIATE NOTICE TO LENDER...................................................................-34- 9-4. BORROWING BASE CERTIFICATE...................................................................-36- 9-5. WEEKLY REPORTS...............................................................................-36- 9-6. MONTHLY REPORTS..............................................................................-36- 9-7. ANNUAL REPORTS...............................................................................-37- 9-8. OFFICERS' CERTIFICATES....................................................
USE AND COLLECTION OF COLLATERAL. With notice to Lender and Lender's opportunity to participate in any proceedings regarding the same, Borrower may consent to the return of any item of Collateral pursuant to Section 546(h)(a/k/a the Second Section 546(g)) of the Bankruptcy Code.
USE AND COLLECTION OF COLLATERAL. 117 6.1. Use of Inventory Collateral.........................................
USE AND COLLECTION OF COLLATERAL. 7-1. USE OF INVENTORY COLLATERAL................................................................. 75 . 7-2. INVENTORY QUALITY........................................................................... 75 . 7-3.
USE AND COLLECTION OF COLLATERAL. 54 8-1. Adjustments and Allowances 54 8-2. Validity of Accounts 54 8-3. Notification to Account Debtors 55 ARTICLE 9 - RECEIVABLES 55 9-1. Proceeds and Collection of Accounts 55 9-2. Proceeds and Collection of Accounts Held in Trust 56 9-3. Payment of Liabilities 56