Common use of Certain Matters Affecting the Collateral Agent Clause in Contracts

Certain Matters Affecting the Collateral Agent. (a) The Collateral Agent shall not be required to expend or risk its own funds or otherwise incur financial liability for the performance of any of its duties hereunder or the exercise of any of its rights or powers if there is reasonable ground for believing that the repayment of such funds or adequate indemnity against such risk or liability is not assured to it. (b) Notwithstanding anything in this Agreement to the contrary, in no event shall the Collateral Agent be liable for special, indirect, punitive or consequential loss or damage or lost profits or loss of business arising or in connection with this Agreement or the other Loan Documents. (c) The right of the Collateral Agent to perform any discretionary act enumerated in this Agreement shall not be construed as a duty and the Collateral Agent shall not be liable for the omission to perform any such act. (d) The Collateral Agent shall not be required to give any bond or surety in connection with this Agreement or the powers granted hereunder. (e) The Collateral Agent shall at no time, except during the continuance of an Event of Default, be under any duty to direct or supervise the investment of, or to advise or make any recommendation for the purchase sale, retention or disposition of, Collateral. (f) The Collateral Agent shall not be under any obligation to inquire into, and shall not be liable for, the validity or genuineness of any Collateral, the legality of the purchase or sale of any Collateral, the propriety of the amount paid for any Collateral upon purchase or sale, or any actions of third parties with respect to the negotiability of any Collateral. (g) The Collateral Agent shall have no liability with respect to any valuation regardless of whether such valuation is significantly greater or less than other possible valuations.