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86-- 101845 upon receipt, transmit and deliver to the Agent, in the form received, all cash, checks, drafts, chattel paper and other instruments or writings for the payment of money (properly endorsed, where required, so that such items say be collected by the Agent) which may be received by the Mortgagor at any time in full or partial payment or otherwise as proceeds of any of the Collateral. Any such items which may be received by the Mortgagor will not be commingled with any other of its funds or property, but will be held separate and apart from its own funds or property and upon express trust for the Lenders until delivery is made to the Agent. All items or amounts which are delivered by the Mortgagor to.the Agent on account of partial or full payment or otherwise as proceeds of any of the Collateral shall be deposited to the credit of a deposit account (herein called the "Assignee Deposit Account ") in the name of the Mortgagor with the Agent, as security for payment of the Liabilities. Prior to the occurrence and continuation of a Default, the Mortgagor shall have the right to withdraw Funds deposited with the Assignee Deposit Account. After the occurrence and during the continuation of a Default, the Mortgagor shall have no right to withdraw any funds deposited in the Assignee Deposit Account. After the occurrence and during the continuation of a Default, the Agent may from time to time in its discretion, and shall upon request of the Mortgagor made not more than once in any one -week period, apply all or any part of the then - balance in the Assignee Deposit Account representing collected funds, toward payment of the Liabilities, whether or not ; then due, in such order of application as the Agent may determine, and the Agent may, from time to time, in its discretion, release all or any part of such balance to the M: Mortgagor. Except as provided herein, in the Loan Agreement, in the Surco Note or in the Notes, the Mortgagor shall have no right to withdraw any funds deposited in the Assignee Deposit Account. The Agent is authorized to endorse, in the name of the Mortgagor, any item, howsoever° received by it, representing any payment on or other proceeds (including insurance proceeds) of any of the Collateral and to endorse and deliver, in the name of the Mortgagor, any instrument, chattel paper or other item of Collateral held by the Trustees or the Agent hereunder, in z connection with the sale or collection of Collateral. 1.18. Agent's Performance. If the Mortgagor fails to'�� pay or perform any of its o legations herein contained (including payment of expenses of foreclosure and court costs), the Agent may (but need not), as agent or attorney - in -fact of the Mortgagor, make any payment or perform (or cause to be performed) any obligation of the Mortgagor -19- a� a