Common use of Limitation on Duty of Secured Party in Respect of Collateral Clause in Contracts

Limitation on Duty of Secured Party in Respect of Collateral. The powers conferred on Secured Party under this Agreement are solely to protect Secured Party’s interest in the Collateral and shall not impose any duty upon Secured Party to exercise any such powers. Except for reasonable care in the custody of any Collateral in Secured Party’s possession and the accounting for moneys actually received by Secured Party under this Agreement, Secured Party shall have no duty as to any Collateral or as to the taking of any necessary steps to preserve rights against prior parties or any other rights pertaining to any Collateral. Secured Party shall be deemed to have exercised reasonable care in the custody and preservation of the Collateral in Secured Party’s possession if the Collateral is accorded treatment substantially equal to that which Secured Party accords Secured Party’s own property, it being understood that Secured Party shall not be liable or responsible for any loss or damage to any of the Collateral, or for any diminution in the value thereof, by reason of the act or omission of any warehouseman, carrier, forwarding agency, consignee or other bailee selected by Secured Party in good faith. Except as otherwise expressly provided in this Section 6.01, Debtor has the risk of loss of the Collateral. Further, Secured Party has no duty to collect any income accruing on the Collateral or to preserve any rights relating to the Collateral. Secured Party shall have no obligation to clean-up or otherwise prepare the Collateral for sale.

Limitation on Duty of Secured Party in Respect of Collateral. The powers conferred on Secured Party under this Agreement are solely to protect Secured Party’s interest in Beyond the Collateral and shall not impose any duty upon Secured Party to exercise any such powers. Except for of reasonable care in the custody of any Collateral in Secured Party’s possession and the accounting for moneys actually received by Secured Party under this Agreementthereof, Secured Party shall have no duty as to any Collateral in its possession or control or in the possession or control of any agent or bailee or any income thereon or as to the taking preservation of any necessary steps to preserve rights against prior parties or any other rights pertaining to any Collateralthereto. Secured Party shall be deemed to have exercised reasonable care in the custody and preservation of the Collateral in Secured Party’s its possession if the Collateral is accorded treatment substantially equal to that which Secured Party it accords Secured Party’s its own property, it being understood that Secured Party and shall not be liable or responsible for any loss or damage to any of the Collateral, or for any diminution in the value thereof, by reason of the act or omission of any warehouseman, carrier, forwarding agency, consignee or other agent or bailee selected by Secured Party in good faith. Except as otherwise expressly provided Secured Party shall not be responsible for the existence, genuineness or value of any of the Collateral or for the validity, perfection, priority or enforceability of the security interests granted or created hereunder in this Section 6.01, Debtor has the risk of loss any of the Collateral. Further, Secured Party has no duty whether impaired by operation of law or by reason of any action or omission to collect any income accruing act on the Collateral or to preserve any rights relating to the Collateralits part hereunder. Secured Party shall have no obligation duty to clean-up ascertain or otherwise prepare inquire as to the Collateral for saleperformance or observance of any of the terms of this Security Agreement by Debtor.