HomeMy WebLinkAbout1639 dicscretion may: (a) notify either in its owq name or in the name ,
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of Debtor, or require Debtor to notify, any customer of Debtor named
in the Receivables of this Assignment; (b) to demand, collect or
compromise any and all sums which Aow are or may become due or owing
upon any of the Receivables; any amounts owed by Debtor to manufacturers
of Inventory; or any amounts owed to Debtor under manufacturers' ~
warranty; (c) to enforce payment of any Receivable either in its own
name or in the name of the Debtor; (d) to discharge liens,. or pay
interest on Collateral; (e) to pay or require Debtor to pay for the
repair, maintenance and preservation of the Collateral; (f) to perform
or cause to be performed for and on behalf of Debtor any acts, conditions,
obligations or covenants that Debtor has failed to refuse to perform; and
(g) to~endorse in the name of the Debtor and to collect any negotiable
instruments tendered or received in payment of the Receivables. (But
the. Bank under no circumstances shall be under any duty to act in regard
to any of the foregoing matters).
6. Debtor further covenants, agrees, and warrants that:
(a) When the Debtor receives the proceeds of either the Inventory or
the Receivables or any part of them, DEBTOR WILL IMMEDIATELY DELI~IER THE
PROCEEDS TO THE BANK IN THE ORIGINAL FORM IN WHICH RECEI~/ED, WHETHER
IN CASH, CHECK OR OTHER FORM OF PAYMENT. Each check or other medium
which may require endorsement, shall be endorsed by Debtor to the order
of the Bank.
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j (b) All proceeds received by the Bank, either from Debtor '
or directly from any customer of Debtor named in the Receivable or any
bonus, discount or other amount paid by any manufacturer to Debtor shall
be applied immediately by the Bank against the indebtedness of Debtor,
or at the discretion of the Bank, deposited in a special account in the
Bank in the name of the Debtor and held by the Bank as Collateral for the
~ payment of the indebtedness. The Bank may at any time, in its sole
discretion, apply any part of the credit balance in the special account
to the payment of the indebtedness, whether or not the same be due. .
a Upon the full and final liquidation of the indebtedness, the Bank will
pay over to Debtor the difference, if any, received by it from the
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Debtor or Debtor's customers. °o~
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(c) Bank may apply the proceeds of any insurance on the ~ `
Inventory toward payment of Debtor's obligations, whether due or not
due, in such order of application as Bank may determine. Bank may act.
as attorney for Debtor in obtaining, adjusting, settling and canceling
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