Common use of Secured Party's Rights in Collateral Clause in Contracts

Secured Party's Rights in Collateral. With respect to the Collateral, or any part thereof, which at any time may come into the possession, custody, or under the control of the Secured Party, the right is expressly granted to the Secured Party, at its sole discretion, but only upon the occurrence and during the continuation of an Event of Default: (i) to transfer or register in the name of itself or its nominee any of the Collateral, and whether or not so transferred or registered, to receive the income and dividends thereon, including stock dividends and rights to subscribe, and to hold the same as a part of the Collateral and/or apply the same as hereafter provided; (ii) to exchange any of the Collateral for other property upon the reorganization, recapitalization, or other readjustment of the Debtor and in connection therewith, to deposit the Collateral or any part thereof with any nominee or depository upon such terms as it may determine in its sole discretion; and (iii) to vote the Collateral so transferred or registered and to exercise, or cause its nominee to exercise, all or any powers or rights with respect thereto with the same force and effect as an absolute owner thereof, all without notice to the Debtor and without liability, except to account for property actually received by the Secured Party. The Secured Party shall be deemed to have possession of any of the Collateral in transit to, or set apart for, it or any of its agents, affiliates, associates, or correspondents.