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Accounts Receivable Pledge Agreement

This is an actual contract by Dura Automotive Systems.

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Sectors: Automotive and Transport Equipment
Governing Law: Mexico
Effective Date: August 31, 1994
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ACCOUNTS RECEIVABLE PLEDGE AGREEMENT


This ACCOUNTS RECEIVABLE PLEDGE AGREEMENT (this "PLEDGE AGREEMENT"), dated as of August 31, 1994 is entered into by and between Continental Bank, as agent for itself and the Lenders (as hereinafter defined), as Pledgee (hereinafter "AGENT")and Dura de Mexico, S.A. de C.V., as Pledgor (hereinafter the "COMPANY") in accordance with the following Representations and Clauses:


REPRESENTATIONS AND WARRANTIES
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WHEREAS, as of July 30, 1987 the Company entered into an Assembly (Maquila) and Technical Assistance Agreement with Dura Corporation, which Agreement was assigned to Dura Automotive Systems, Inc. (formerly known as Dura Mechanical Components, Inc.), by means of which the Company has bound itself to assemble and/or manufacture for Dura Automotive Systems, Inc. steel components for the automotive industry;


WHEREAS, in consideration of such assembly and manufacturing services, the Company is entitled to receive from Dura Automotive Systems, Inc. as profit (such amounts whether now existing or hereafter arising hereinafter referred to as the "RECEIVABLES"), an amount equal to one percent (1.00%) of the Company's operating expenses, in addition to the reimbursement of its actual cost;


WHEREAS, the Company is to receive payment of the Receivables as a continuous obligation of Dura Automotive Systems, Inc.;


WHEREAS, on even date herewith Dura Automotive Systems, Inc. entered into a Credit Agreement (together with all amendments and other modifications, if any, from time to time, hereafter made thereto) (the "CREDIT AGREEMENT") with various financial institutions as are or may become parties thereto (collectively, the "LENDERS"), The Bank of Nova Scotia, Comerica Bank and The Chase Manhattan Bank, N.A., as co-agents (collectively, the "CO-AGENTS") and Agent;


WHEREAS, the Company is willing to create a security interest on the Receivables in order to secure the Guaranty of even date herewith executed by the Company in favor of Agent, the Co-


Agents and the Lenders of the obligations of Dura Automotive Systems, Inc. under the Credit Agreement (the "OBLIGATIONS");


NO
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