The trial court rejected the novation argument, but the Sixth Circuit quashed it and found that the following provisions of the amended and amended loan agreement raised a question of fact as to whether the parties intended to replace and remove the original loan contract and the security interest granted to it in its Unless otherwise stated, the enforcement of this second amendment cannot be considered a waiver of a right. , the power or remedy of the administrative officer or lender, constitutes a waiver of the provision of one of the credit documents or is used to fulfill the obligations. Under common law, the essential elements of innovation are: (1) a valid prior obligation; (2) an agreement between the parties to a new contract; (3) the removal of previous commitments; and (4) a new valid contract. To satisfy the second and third elements, all parties must have „clearly expressed their intention to replace or replace an old agreement.“ 3 The key to innovation analysis is therefore the intention of the parties. While the inadequacy of the evidence proposed by the District Court suggests that the parties might have wanted to innovate may be questioned, the lesson that counsel developing a modified and revised funding agreement should learn from this decision is the importance of clearly explaining the parties` intention that the amended and revised agreement is not an innovation. The In re Fair Finance Company court stated that the 2004 agreement did not explicitly provide for the parties to consider maintaining the original security interests.9 In the development of an amended and revised financing agreement, counsel should include an explicit statement that the agreement is not intended to be an innovation or an end to the commitments arising from the original agreement. , and as part of guaranteed financing, that security interests established in accordance with the original agreement must be pursued and insured with obligations arising from the revised and revised agreement. Recently, the U.S. Court of Auditors for circuit of Six in Bash v. Textron Financial Corporation (In re Fair Finance Company)1 overturned a decision of the District Court for the Northern District of Ohio that an amended and revised loan agreement was not an innovation in the original loan agreement.