Common use of Knowledge of Event of Default Clause in Contracts

Knowledge of Event of Default. The Trustee shall not be deemed to have actual constructive, direct or indirect knowledge or notice of the occurrence of any Default or Event of Default unless and until the Trustee has received, in its capacity as Trustee, from a Bondholder or the Manager a written notice or a certificate referring to the Indenture and stating that a Default or an Event of Default has occurred. The Trustee shall have no obligation whatsoever either prior to or after receiving such notice or certificate to inquire whether a Default or Event of Default has in fact occurred and shall be entitled to rely conclusively, and shall be fully protected in so relying, on any notice or certificate so furnished to it. No provision of this Agreement shall require the Trustee to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder or in the exercise of any of its rights or powers hereunder. In the event that the Trustee receives such a notice of the occurrence of any Default or Event of Default, the Trustee shall, at the expense of the Manager, give a copy of such notice to the Trustee and the Bondholders. The Trustee shall take such action with respect to an Event of Default as so directed pursuant to Section 8.1 hereof.