Section 35: Good faith and commercial reasonableness

(1) All rights and duties that arise under this Act shall be exercised and discharged in good faith and in accordance with reasonable commercial standards.
(2) A person does not act in bad faith merely because he acts with knowledge of the security interest of some other person, unless he knows that his actions would violate rights of the other person.
(3) A person in possession of an encumbered asset shall preserve the asset from damage, impairment and loss, excluding fair wear and tear having regard to the nature of the asset.