Bad Boy Acts Sample Clauses

A "Bad Boy Acts" clause defines specific actions or behaviors by a party—typically a borrower or guarantor—that are considered serious breaches of contract or misconduct. These acts often include fraud, intentional misrepresentation, criminal activity, or unauthorized transfers of collateral, and their occurrence can trigger severe consequences such as personal liability or immediate loan default. The core function of this clause is to deter egregious conduct and protect the lender by ensuring that certain wrongful acts result in stricter penalties or loss of limited liability protections.