Common use of Adverse Contracts Clause in Contracts

Adverse Contracts. The Borrowers are not parties to any agreement or instrument or subject to any charter or other corporate restriction, nor are they subject to any judgment, decree or order of any court or governmental body, which may have a Material Adverse Effect. The Borrowers do not have, nor with reasonable diligence should they have had, knowledge of or notice that it is in default in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any such agreement, instrument, restriction, judgment, decree or order.