Common use of Care of Collateral Clause in Contracts

Care of Collateral. The Pledgor shall have all risk of loss of the Collateral. The Bank shall have no liability or duty, either before or after the occurrence of an Event of Default, on account of loss of or damage to, or to collect or enforce any of its rights against, the Collateral, to collect any income accruing on the Collateral, or to preserve rights against other parties. If the Bank actually receives any notices requiring action with respect to the Collateral, the Bank shall take reasonable steps to forward such notices to the Pledgor. Except as otherwise provided in this Agreement, the Pledgor is responsible for responding to notices concerning the Collateral, voting the Collateral, and exercising rights and options, calls and conversions of the Collateral. The Bank’s sole responsibility is to take such action as is reasonably requested by the Pledgor in writing, however, the Bank is not responsible to take any action that, except as set forth in Section 2.3(b) above, in the Bank’s sole judgment, would affect the value of the Collateral as security for the Obligations adversely. While the Bank is not required to take certain actions, if action is needed, in the Bank’s sole discretion, to preserve and maintain the Collateral, the Pledgor authorizes the Bank to take such action, but the Bank is not obligated to do so.