Common use of Action by Secured Party Clause in Contracts

Action by Secured Party. (a) In the event that Debtor fails to perform any obligation on its part to be performed hereunder, then Secured Party may, but without any obligation to do so and without notice to or demand upon Debtor, perform the same and take such other action as Secured Party may deem necessary to protect the collateral or its security interest therein, Secured Party being hereby authorized (without limiting the general nature of the authority hereinabove conferred) to pay, purchase, contest and compromise any encumbrance, charge or lien which in the reasonable judgment of Secured Party appears to be prior or superior to its security interest, and in exercising any such powers and authority to pay necessary expenses, employ counsel and pay reasonable attorneys' fees. Debtor hereby agrees to repay immediately and without demand all reasonable sums so expended by Secured Party, together with interest from the date of expenditure at the highest legal rate ("Default Rate"). (b) Secured Party shall be under no duty or obligation to (i) preserve, process, develop, maintain or protect the collateral or any of Debtor's rights or interests therein, or (ii) make or give any notices of default, presentments, demands for performance, notices of nonperformance or dishonor, protests, notices of protest or notices of any other nature whatsoever in connection with the collateral on behalf of Debtor or any other person having any interest therein; and Secured Party does not assume and shall not be obligated to perform the obligations of Debtor, if any, with respect to the collateral. Secured Party may, at any time and from time to time, without notice or demand and at the expense of Debtor, make reasonable requests for information concerning the collateral from any officer, director, agent or employee of any corporation, governmental agency or instrumentality.