Change of Control

Definition:

Where control of an entity shifts from one entity or person to another. Control is often measured by equity ownership, changes in the composition of the Board of Directors (BoD) and changes in the general partners (in the case of partnerships).

Various agreements make use of this concept, typically triggering certain rights of the unaffected party when there is a Change of Control. These rights range from the right to terminate the agreement to the right to demand prepayment (in the context of a Credit Agreement).

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