Adverse Fact Clause Samples
An Adverse Fact clause defines and addresses any information or circumstance that could negatively impact a party’s interests or the value of the transaction. In practice, this clause typically requires parties to disclose any known issues, such as pending litigation, regulatory violations, or material defects, that could affect the agreement. Its core function is to ensure transparency and allocate risk by obligating parties to reveal potentially harmful facts, thereby preventing disputes and fostering informed decision-making.
Adverse Fact. Other than general economic conditions, no fact is known to the Borrower, as of the date hereof, which has had or can reasonably be expected in the future to have a Material Adverse Effect which has not been previously disclosed to Lender by the Borrower in writing.
Adverse Fact. No fact is known to Borrower or any Guarantor, as of the date hereof, which has had or might in the future have a Material Adverse Effect on Borrower or any Guarantor which has not been previously disclosed to Lender by Borrower or Guarantors.
Adverse Fact. No fact is known to it, which has had or might in the future have a Material Adverse Effect on it, any other Borrower or any Guarantor which has not been previously disclosed to the Lender.