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. Beyond the exercise of reasonable care in the custody thereof, Agent and Secured Parties shall have no duty as to any Collateral in their possession or control or in the possession or control of any agent or bailee or as to the preservation of rights against prior parties or any other rights pertaining thereto. Each Secured Party shall be deemed to have exercised reasonable care in the custody of the Collateral in its or Agent's or any other agent's or bailee's possession if the Collateral is accorded treatment substantially equal to that which it accords its own property, 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 Parties or Majority Lenders in good faith.

Limitation on Duty of Secured Party in Respect of Collateral. Beyond the exercise of reasonable care in the custody thereof, Agent and the Secured Parties Party shall have no duty as to any Collateral in their its possession or control or in the possession or control of any agent or bailee or any income thereon or as to the preservation of rights against prior parties or any other rights pertaining thereto. Each The Secured Party shall be deemed to have exercised reasonable care in the custody and preservation of the Collateral in its or Agent's or any other agent's or bailee's possession if the Collateral is accorded treatment substantially equal to that which it accords its own property, 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 the Secured Parties or Majority Lenders Party in good faith.