Common use of Hypothecation or Pledge of Loans Clause in Contracts

Hypothecation or Pledge of Loans. Subject to the terms of the Custodial Agreement, Agent, acting at the direction of Lender, shall have free and unrestricted use of all of Lender's interest in the Collateral and nothing in this Agreement shall preclude Lender from engaging in repurchase transactions with Lender's interest in the Collateral or otherwise pledging, repledging, transferring, hypothecating, or rehypothecating Lender's interest in the Collateral, on terms, and subject to conditions, within Lender's absolute discretion. Nothing contained in this Agreement shall obligate Agent to segregate any Collateral delivered to Agent by Borrower.