Common use of Bank’s Responsibility as to Collateral Clause in Contracts

Bank’s Responsibility as to Collateral. In the event that FHLBank shall take possession of any Collateral hereunder, FHLBank’s duty as to such Collateral shall be solely to use reasonable care in the custody and preservation of the Collateral in its possession. This duty shall not require FHLBank to take any steps necessary to preserve rights against prior parties or the duty to send notices, perform services or take any action in connection with the management of the Collateral. The Institution shall make and maintain copies, microfilm or other recordings of all Collateral delivered to FHLBank.

Bank’s Responsibility as to Collateral. In the event that FHLBank shall take possession of any Collateral hereunder, FHLBank’s duty as to such Collateral shall be solely to use reasonable care in the custody and preservation of the Collateral in its possession. This duty shall not require FHLBank to take any steps necessary to preserve rights against prior parties or the duty to send notices, perform services or take any action in connection with the management of the Collateral. The Institution Institutions shall make and maintain copies, microfilm or other recordings of all Collateral delivered to FHLBank.