Accounts Receivable Collection Account
This Controlled Account Agreement (“Agreement”) is entered into as of ______ ___ , 20__ by and between:
CARE CASH GLOBAL, a California corporation (“CCG” or “Secured Party”)
and
________________________________________ (“Borrower”)
This Agreement is executed in connection with:
Borrower acknowledges that Accounts Receivable pledged as collateral constitute a material component of the collateral securing the Credit Facility.
This Agreement establishes procedures governing the collection, administration, monitoring, and control of proceeds arising from such Accounts Receivable.
2.1 Establishment. Borrower shall establish and maintain one or more deposit accounts acceptable to CCG (the “Controlled Account”).
2.2 Ownership. Borrower shall remain the owner of the Controlled Account, subject to the rights granted herein and under the Loan Documents.
2.3 Exclusive Account. CCG may require Borrower to direct designated receivable collections into the Controlled Account.
Borrower agrees that:
Borrower shall not commingle collateral proceeds with unrelated funds in a manner that impairs CCG’s collateral rights.
4.1 Monitoring. CCG may monitor activity within the Controlled Account.
4.2 Reporting. Borrower shall provide account statements and transaction history upon request.
4.3 Information Access. Borrower authorizes financial institutions maintaining the Controlled Account to provide account information to CCG as permitted by law.
5.1 Application of Funds. CCG may apply funds deposited into the Controlled Account toward:
5.2 Excess Funds. After satisfaction of required payment obligations, remaining funds may be released to Borrower in accordance with CCG policies.
5.3 Deficiency. Nothing herein shall limit Borrower’s responsibility for any deficiency remaining after application of Controlled Account funds.
6.1 Authorization. Borrower irrevocably authorizes CCG to notify Account Debtors that Accounts Receivable have been pledged as collateral.
6.2 Payment Instructions. CCG may direct Account Debtors to remit payments directly to:
6.3 No Further Consent. Borrower waives any requirement for further notice or consent regarding such payment instructions.
CCG may:
Nothing herein shall require CCG to undertake collection activities.
Without CCG’s written consent, Borrower shall not:
8.1 Close Accounts. Close the Controlled Account.
8.2 Modify Accounts. Change account ownership or control.
8.3 Transfer Collections. Redirect receivable proceeds to another account.
8.4 Create Competing Rights. Grant any third party rights affecting the Controlled Account.
The following shall constitute defaults under this Agreement:
Any default under this Agreement shall constitute an Event of Default under the Credit Facility.
Upon default, CCG may:
10.1 Exclusive Control. Assume exclusive control of the Controlled Account.
10.2 Freeze Disbursements. Suspend distributions to Borrower.
10.3 Apply Funds. Apply all available funds toward Obligations.
10.4 Direct Collection. Collect receivables directly from Account Debtors.
10.5 Additional Remedies. Exercise any rights available under:
Borrower agrees to execute any:
reasonably requested by CCG.
This Agreement shall be governed by California law. Venue shall be Los Angeles County, California.
Electronic signatures and electronically transmitted copies shall be enforceable as originals.
This Agreement shall be interpreted together with:
In the event of conflict, the Credit Agreement shall control unless otherwise stated.