Common use of Duties of Secured Party Clause in Contracts

Duties of Secured Party. The powers conferred on Secured Party hereunder are solely to protect its interests in the Collateral and shall not impose on it any duty to exercise such powers. Except as provided in Section 9-207 of the Code, Secured Party shall have no duty with respect to the Collateral or any responsibility for taking any necessary steps to preserve rights against any Persons with respect to any Collateral. It is also expressly understood and agreed that except for the obligation of “honesty in fact” as provided in Section 1.203 of the Texas Business and Commerce Code (to the extent applicable), the Secured Party, in exercising its rights and performing its obligations under any of the Loan Documents, owes no duty of good faith and/or fair dealing to Pledgor, Obligor, any guarantor of the Obligations, or any shareholder of Obligor, and no fiduciary duty exists between or among Pledgor, Obligor, any guarantor of the Obligations, any shareholder of Obligor, and the Secured Party.

Duties of Secured Party. The powers conferred on Secured Party hereunder are solely to protect its interests in the Collateral and shall not impose on it any duty to exercise such powers. Except as provided in Section 9-207 of the Code, Secured Party shall have no duty with respect to the Collateral or any responsibility for taking any necessary steps to preserve rights against any Persons with respect to any Collateral. It is also expressly understood and agreed that except for the obligation of “honesty in fact” as provided in Section 1.203 of the Texas Business and Commerce Code (to the extent applicable), the Secured Party, in exercising its rights and performing its obligations under any of the Loan Documents, owes no duty of good faith and/or fair dealing to PledgorDebtor, Obligor, any guarantor of the Obligations, or any shareholder of Obligor, and no fiduciary duty exists between or among PledgorDebtor, Obligor, any guarantor of the Obligations, any shareholder of Obligor, and the Secured Party.