Notice of Material Adverse Effect or Covenant Suspension Period Sample Clauses
The "Notice of Material Adverse Effect or Covenant Suspension Period" clause requires a party to promptly notify the other party if a significant negative event occurs that could impact the agreement, or if a period begins during which certain contractual obligations (covenants) are suspended. In practice, this means that if, for example, a borrower experiences a major financial downturn or if a lender suspends specific loan covenants due to changing circumstances, formal notice must be given. The core function of this clause is to ensure transparency and timely communication between parties, allowing them to respond appropriately to significant changes or risks affecting the contract.
Notice of Material Adverse Effect or Covenant Suspension Period. Written notice (i) of the occurrence of any event or occurrence that has had or would reasonably be expected to have a Material Adverse Effect or (ii) Borrower’s determination of the commencement or termination of a Covenant Suspension Period;