Common use of Assignment of Collateral Clause in Contracts

Assignment of Collateral. Upon payment or other satisfaction in full of all obligations secured by any collateral now or hereafter in the possession of any party hereto, the then holder thereof will assign and deliver to the other parties hereto holding a security interest in such collateral, as directed in writing by such other parties, without representation, warranty, or recourse of any kind, all such collateral then in the possession of such holder, and in so doing, such holder shall thereupon be discharged from further responsibility with respect thereto. So long as any obligations secured by any collateral remain unpaid to the holder of such collateral, including, without limitation, a holder to which any such obligations shall have been assigned, such holder may, subject to the provisions of this Agreement, at all times in its sole discretion exercise any and all powers and rights which it now has or may hereafter acquire with respect thereto, without the necessity of obtaining any approval of any of the other parties hereto; nor shall such holder of any collateral have any liability for any action taken or failure to act with respect to any of such collateral held by it beyond the exercise of reasonable care to assure the safe custody thereof.