{"component": "clause", "props": {"groups": [{"size": 71, "samples": [{"hash": "hPK9tTbf6z9", "uri": "/contracts/hPK9tTbf6z9#adverse-change", "label": "Business Loan Agreement (Landmark Bancorp Inc)", "score": 30.8631076813, "published": true}, {"hash": "8GgipS9qk3r", "uri": "/contracts/8GgipS9qk3r#adverse-change", "label": "Commercial Security Agreement (Dolphin Entertainment, Inc.)", "score": 29.3668727875, "published": true}, {"hash": "5Fh6NQR9ETO", "uri": "/contracts/5Fh6NQR9ETO#adverse-change", "label": "Commercial Security Agreement (Speedemissions Inc)", "score": 22.9630393982, "published": true}], "snippet": "A material adverse change occurs in Grantor\u2019s financial condition, or Lender believes the prospect of payment or performance of the Indebtedness is impaired. Insecurity. Lender in good faith believes itself insecure.", "snippet_links": [{"key": "a-material-adverse-change", "type": "clause", "offset": [0, 25]}, {"key": "financial-condition", "type": "clause", "offset": [46, 65]}, {"key": "prospect-of-payment-or-performance", "type": "clause", "offset": [90, 124]}, {"key": "the-indebtedness", "type": "clause", "offset": [128, 144]}, {"key": "in-good-faith", "type": "definition", "offset": [177, 190]}], "hash": "eb104be3cb79d90da8b02f8a78254229", "id": 6}, {"size": 196, "samples": [{"hash": "ewUnMcmq0Sn", "uri": "/contracts/ewUnMcmq0Sn#adverse-change", "label": "Business Loan Agreement (BayFirst Financial Corp.)", "score": 32.3566055298, "published": true}, {"hash": "5uThxXi6j87", "uri": "/contracts/5uThxXi6j87#adverse-change", "label": "Business Loan Agreement (Asset Based) (TSS, Inc.)", "score": 32.1293640137, "published": true}, {"hash": "h0wHpBEAPqw", "uri": "/contracts/h0wHpBEAPqw#adverse-change", "label": "Business Loan Agreement (Asset Based) (TSS, Inc.)", "score": 31.6173858643, "published": true}], "snippet": "A material adverse change occurs in Borrower\u2019s financial condition, or Lender believes the prospect of payment or performance of the Loan is impaired. Insecurity. Lender in good faith believes itself insecure.", "snippet_links": [{"key": "a-material-adverse-change", "type": "clause", "offset": [0, 25]}, {"key": "financial-condition", "type": "clause", "offset": [47, 66]}, {"key": "prospect-of-payment-or-performance", "type": "clause", "offset": [91, 125]}, {"key": "the-loan", "type": "clause", "offset": [129, 137]}, {"key": "in-good-faith", "type": "definition", "offset": [170, 183]}], "hash": "1245fe5595cdfd4e48d3c1601f9af552", "id": 1}, {"size": 25, "samples": [{"hash": "63oqa72gAO2", "uri": "/contracts/63oqa72gAO2#adverse-change", "label": "Website Purchase Agreement", "score": 31.8209342957, "published": true}, {"hash": "2HuQldWKGtM", "uri": "/contracts/2HuQldWKGtM#adverse-change", "label": "Asset Purchase Agreement", "score": 30.1817646027, "published": true}, {"hash": "8vt9ZdosdqB", "uri": "/contracts/8vt9ZdosdqB#adverse-change", "label": "Website Purchase Agreement", "score": 29.7806930542, "published": true}], "snippet": "Between the date of this Agreement and the Closing, there shall be no material adverse change of the Assets.", "snippet_links": [{"key": "date-of-this-agreement", "type": "clause", "offset": [12, 34]}, {"key": "the-closing", "type": "definition", "offset": [39, 50]}, {"key": "change-of", "type": "clause", "offset": [87, 96]}, {"key": "the-assets", "type": "clause", "offset": [97, 107]}], "hash": "6bd1c640989e0ae00e667370b93d604a", "id": 10}, {"size": 179, "samples": [{"hash": "bRIdV4ZtKvr", "uri": "/contracts/bRIdV4ZtKvr#adverse-change", "label": "Business Loan Agreement (Charge Enterprises, Inc.)", "score": 33.4161529541, "published": true}, {"hash": "dBokZteCUzH", "uri": "/contracts/dBokZteCUzH#adverse-change", "label": "Change in Terms Agreement (Eaco Corp)", "score": 28.5578365326, "published": true}, {"hash": "5SHZ475qkXE", "uri": "/contracts/5SHZ475qkXE#adverse-change", "label": "Change in Terms Agreement (XPEL, Inc.)", "score": 28.4072551727, "published": true}], "snippet": "A material adverse change occurs in Borrower's financial condition, or Lender believes the prospect of payment or performance of the Indebtedness is impaired.", "snippet_links": [{"key": "a-material-adverse-change", "type": "clause", "offset": [0, 25]}, {"key": "financial-condition", "type": "clause", "offset": [47, 66]}, {"key": "prospect-of-payment-or-performance", "type": "clause", "offset": [91, 125]}, {"key": "the-indebtedness", "type": "clause", "offset": [129, 145]}], "hash": "b6247b2242e18bcd8c074ecc525770b4", "id": 2}, {"size": 158, "samples": [{"hash": "6tL342SvlXq", "uri": "/contracts/6tL342SvlXq#adverse-change", "label": "Credit Agreement (Royal Hawaiian Orchards, L.P.)", "score": 26.2429847717, "published": true}, {"hash": "ly3Qgp2f0RM", "uri": "/contracts/ly3Qgp2f0RM#adverse-change", "label": "Credit Agreement (Crimson Wine Group, LTD)", "score": 24.2361392975, "published": true}, {"hash": "ePd8o5TJgVF", "uri": "/contracts/ePd8o5TJgVF#adverse-change", "label": "Receivable Sale Agreement (Ferrellgas Partners Finance Corp)", "score": 23.0506496429, "published": true}], "snippet": "There occurs a Material Adverse Effect; or", "snippet_links": [{"key": "there-occurs-a", "type": "definition", "offset": [0, 14]}, {"key": "material-adverse-effect", "type": "definition", "offset": [15, 38]}], "hash": "2bd7d3af3624376ef9e5925ef1abffd4", "id": 4}, {"size": 125, "samples": [{"hash": "cklqShPB1lo", "uri": "/contracts/cklqShPB1lo#adverse-change", "label": "Business Loan Agreement (Central RoRo, LLC)", "score": 36.6741943359, "published": true}, {"hash": "2ir1kzLplyU", "uri": "/contracts/2ir1kzLplyU#adverse-change", "label": "Business Loan Agreement (Intelligent Protection Management Corp.)", "score": 36.2881584167, "published": true}, {"hash": "a3vl5T1doJh", "uri": "/contracts/a3vl5T1doJh#adverse-change", "label": "Business Loan Agreement (Heritage Global Inc.)", "score": 35.1984939575, "published": true}], "snippet": "A material adverse change occurs in Borrower\u2019s financial condition, or \u2587\u2587\u2587\u2587\u2587\u2587 believes the prospect of payment or performance of the Loan is impaired.", "snippet_links": [{"key": "a-material-adverse-change", "type": "clause", "offset": [0, 25]}, {"key": "financial-condition", "type": "clause", "offset": [47, 66]}, {"key": "prospect-of-payment-or-performance", "type": "clause", "offset": [91, 125]}, {"key": "the-loan", "type": "clause", "offset": [129, 137]}], "hash": "44b6ea24923f2f2a0afc72b0787ea4e9", "id": 5}, {"size": 168, "samples": [{"hash": "9HhAznJ2LAq", "uri": "/contracts/9HhAznJ2LAq#adverse-change", "label": "Commercial Pledge Agreement (CASI Pharmaceuticals, Inc.)", "score": 33.6105422974, "published": true}, {"hash": "gVMq8xOUGp3", "uri": "/contracts/gVMq8xOUGp3#adverse-change", "label": "Commercial Pledge and Security Agreement (Black Ridge Oil & Gas, Inc.)", "score": 31.3682403564, "published": true}, {"hash": "8GXOjNV2dQ5", "uri": "/contracts/8GXOjNV2dQ5#adverse-change", "label": "Commercial Security Agreement (Eaco Corp)", "score": 30.5578365326, "published": true}], "snippet": "A material adverse change occurs in Grantor's financial condition, or Lender believes the prospect of payment or performance of the Indebtedness is impaired.", "snippet_links": [{"key": "a-material-adverse-change", "type": "clause", "offset": [0, 25]}, {"key": "financial-condition", "type": "clause", "offset": [46, 65]}, {"key": "prospect-of-payment-or-performance", "type": "clause", "offset": [90, 124]}, {"key": "the-indebtedness", "type": "clause", "offset": [128, 144]}], "hash": "6d8029a5815048d75979c9c10340e309", "id": 3}, {"size": 46, "samples": [{"hash": "2kG607S8vXx", "uri": "/contracts/2kG607S8vXx#adverse-change", "label": "Financing and Security Agreement (ARGON ST, Inc.)", "score": 21.0739212036, "published": true}, {"hash": "cwozA1ymwNp", "uri": "/contracts/cwozA1ymwNp#adverse-change", "label": "Financing and Security Agreement (Healthextras Inc)", "score": 21.0, "published": true}, {"hash": "6lkXW6s50IC", "uri": "/contracts/6lkXW6s50IC#adverse-change", "label": "Financing and Security Agreement (Pec Solutions Inc)", "score": 21.0, "published": true}], "snippet": "No adverse change shall have occurred in the condition (financial or otherwise), operations or business of the Borrower that would, in the good faith judgment of the Lender, materially impair the ability of the Borrower to pay or perform any of the Obligations.", "snippet_links": [{"key": "no-adverse-change", "type": "clause", "offset": [0, 17]}, {"key": "the-condition", "type": "clause", "offset": [41, 54]}, {"key": "business-of-the-borrower", "type": "clause", "offset": [95, 119]}, {"key": "good-faith-judgment", "type": "definition", "offset": [139, 158]}, {"key": "the-lender", "type": "clause", "offset": [162, 172]}, {"key": "materially-impair", "type": "definition", "offset": [174, 191]}, {"key": "to-pay", "type": "clause", "offset": [220, 226]}, {"key": "the-obligations", "type": "clause", "offset": [245, 260]}], "hash": "4b3a01ac3abfc23bba8fbea612e37ab8", "id": 7}, {"size": 38, "samples": [{"hash": "gAeXXcRU2Ob", "uri": "/contracts/gAeXXcRU2Ob#adverse-change", "label": "Purchase and Sale Agreement (OUTFRONT Media Inc.)", "score": 29.6817245483, "published": true}, {"hash": "a3XcyTrULFZ", "uri": "/contracts/a3XcyTrULFZ#adverse-change", "label": "Receivables Purchase Agreement (OUTFRONT Media Inc.)", "score": 29.6817245483, "published": true}, {"hash": "ijoX4ZUuvyo", "uri": "/contracts/ijoX4ZUuvyo#adverse-change", "label": "Receivables Purchase Agreement (OUTFRONT Media Inc.)", "score": 28.5017108917, "published": true}], "snippet": "(i) Since December 31, 2016, there has been no event or occurrence that has caused, or would reasonably be expected to cause, a Material Adverse Effect.", "snippet_links": [{"key": "since-december", "type": "clause", "offset": [4, 18]}, {"key": "no-event", "type": "clause", "offset": [44, 52]}, {"key": "material-adverse-effect", "type": "definition", "offset": [128, 151]}], "hash": "5bdb686dcfc7ce8ff80c8c78cee30275", "id": 8}, {"size": 32, "samples": [{"hash": "jUBMRVo2L9o", "uri": "/contracts/jUBMRVo2L9o#adverse-change", "label": "Term Loan Agreement (Mdu Resources Group Inc)", "score": 21.0, "published": true}, {"hash": "E38D38N99F", "uri": "/contracts/E38D38N99F#adverse-change", "label": "Term Loan Agreement (Mdu Resources Group Inc)", "score": 21.0, "published": true}, {"hash": "jr6heReyIWK", "uri": "/contracts/jr6heReyIWK#adverse-change", "label": "Credit Agreement (Mdu Resources Group Inc)", "score": 18.0, "published": true}], "snippet": "There has been no material adverse change in the business, properties or condition (financial or otherwise) of the Borrower since the date of the latest financial statement referred to in Section 4.5.", "snippet_links": [{"key": "change-in-the-business", "type": "clause", "offset": [35, 57]}, {"key": "of-the-borrower", "type": "clause", "offset": [108, 123]}, {"key": "date-of", "type": "clause", "offset": [134, 141]}, {"key": "latest-financial-statement", "type": "definition", "offset": [146, 172]}, {"key": "section-45", "type": "clause", "offset": [188, 199]}], "hash": "e7d7056d18c078f95b9d2d91d4f9ece7", "id": 9}], "next_curs": "ClcSUWoVc35sYXdpbnNpZGVyY29udHJhY3RzcjMLEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2IhdhZHZlcnNlLWNoYW5nZSMwMDAwMDAwYQyiAQJlbhgAIAA=", "clause": {"size": 2141, "parents": [["events-of-default", "Events of Default"], ["representations-and-warranties", "Representations and Warranties"], ["event-of-default", "Event of Default"], ["conditions-precedent", "Conditions Precedent"], ["conditions-to-obligations-of-buyer", "Conditions to Obligations of Buyer"]], "children": [["notices", "Notices"], ["", ""], ["breach", "BREACH"], ["delay", "DELAY"], ["counterparts", "COUNTERPARTS"]], "title": "Adverse Change", "id": "adverse-change", "related": [["adverse-changes", "Adverse Changes", "<strong>Adverse Changes</strong>"], ["adverse-change-etc", "Adverse Change, etc", "<strong>Adverse Change</strong>, etc"], ["material-adverse-change", "Material Adverse Change", "Material <strong>Adverse Change</strong>"], ["no-adverse-change", "No Adverse Change", "No <strong>Adverse Change</strong>"], ["material-adverse-changes", "Material Adverse Changes", "Material <strong>Adverse Changes</strong>"]], "related_snippets": [], "updated": "2026-07-10T04:32:06+00:00", "also_ask": ["What objective criteria should define an 'adverse change' to avoid ambiguity?", "How can parties negotiate materiality thresholds to balance risk and certainty?", "What are the most common pitfalls in drafting adverse change clauses that courts find unenforceable?", "How do adverse change clauses differ in enforceability across key jurisdictions?", "What evidence is typically required in court to prove an adverse change has occurred?"], "drafting_tip": "Define 'adverse change' precisely to avoid ambiguity; specify objective criteria to ensure enforceability; clarify notification procedures to facilitate timely responses.", "explanation": "An Adverse Change clause defines the parties' rights and obligations if a significant negative event or material change occurs that could impact the agreement. Typically, this clause allows one or both parties to renegotiate terms, suspend performance, or even terminate the contract if circumstances such as financial instability, regulatory changes, or major operational disruptions arise. Its core practical function is to allocate risk and provide flexibility, ensuring that parties are not unfairly bound to an agreement when unforeseen detrimental events fundamentally alter the original basis of the contract."}, "json": true, "cursor": ""}}