Common use of Preservation of the Collateral Clause in Contracts

Preservation of the Collateral. In addition to the other rights granted to the Bank under this Article VI, the Bank may, but shall not be obligated to, take such actions from time to time as the Bank deems appropriate to maintain or protect the Collateral. The Bank shall be deemed to have exercised reasonable care in the safekeeping of any Collateral in its possession or under its control if the Bank has treated the Collateral with care that is substantially equal to that which the Bank accords its own property. In addition, any failure of the Bank to preserve or protect any rights with respect to the Collateral against prior or third parties, or to do any act with respect to preservation of the Collateral shall not be deemed a failure to exercise reasonable care in the custody or preservation of the Collateral. The Borrower shall have the sole responsibility for taking such action as may be necessary, from time to time, to preserve all rights of the Borrower and the Bank in the Collateral against prior or third parties.