a loan document might have a providion that starts like this - changes in gaap : if at any time any change in gaap (generally accepted accounting principles) would affect the computation of any financial ratio or requirement set forth in any loan document...

1. WOuld you finish this provision with gaap currently in force, new gaap, or somewhere in between?

2. if this creates a cost, should the lender or thr borrower bear the cost ? in regard to ratio covenant and expense of tracking financial statements with each version of gaap.

3. Suppose its been years since loan was made and either the borrower or lender is in a stronger position, does the change in gaap allow exercise of leverage to make substantive changes in the loan provisions?