diff --git a/nexus/nexus-proxy/src/main/java/org/sonatype/nexus/proxy/storage/remote/commonshttpclient/HttpClientProxyUtil.java b/nexus/nexus-proxy/src/main/java/org/sonatype/nexus/proxy/storage/remote/commonshttpclient/HttpClientProxyUtil.java
index 5233fc7c25..696a4107ae 100644
--- a/nexus/nexus-proxy/src/main/java/org/sonatype/nexus/proxy/storage/remote/commonshttpclient/HttpClientProxyUtil.java
+++ b/nexus/nexus-proxy/src/main/java/org/sonatype/nexus/proxy/storage/remote/commonshttpclient/HttpClientProxyUtil.java
@@ -233,7 +233,7 @@ else if ( ras instanceof UsernamePasswordRemoteAuthenticationSettings )
         // consequences, like resetting all the HTTP clients of all remote storages (coz they think there is a change
         // in proxy or remote connection settings, etc).
         final Boolean isNtlmUsedOldValue = (Boolean) ctx.getContextObject( NTLM_IS_IN_USE_KEY );
-        if ( isNtlmUsedOldValue == null || !isNtlmUsedOldValue.booleanValue() != isNtlmUsed )
+        if ( isNtlmUsedOldValue == null || isNtlmUsedOldValue.booleanValue() != isNtlmUsed )
         {
             if ( isNtlmUsed )
             {
diff --git a/nexus/nexus-proxy/src/test/java/org/sonatype/nexus/proxy/storage/remote/commonshttpclient/HttpClientProxyUtilTest.java b/nexus/nexus-proxy/src/test/java/org/sonatype/nexus/proxy/storage/remote/commonshttpclient/HttpClientProxyUtilTest.java
new file mode 100644
index 0000000000..b952e9b618
--- /dev/null
+++ b/nexus/nexus-proxy/src/test/java/org/sonatype/nexus/proxy/storage/remote/commonshttpclient/HttpClientProxyUtilTest.java
@@ -0,0 +1,153 @@
+package org.sonatype.nexus.proxy.storage.remote.commonshttpclient;
+
+import static org.hamcrest.MatcherAssert.assertThat;
+import static org.hamcrest.Matchers.equalTo;
+import static org.hamcrest.Matchers.greaterThan;
+
+import java.util.Set;
+
+import org.apache.commons.httpclient.HttpClient;
+import org.junit.Test;
+import org.slf4j.Logger;
+import org.slf4j.LoggerFactory;
+import org.sonatype.nexus.proxy.repository.RemoteAuthenticationSettings;
+import org.sonatype.nexus.proxy.repository.RemoteConnectionSettings;
+import org.sonatype.nexus.proxy.repository.RemoteProxySettings;
+import org.sonatype.nexus.proxy.storage.remote.DefaultRemoteStorageContext;
+
+public class HttpClientProxyUtilTest
+{
+    private final Logger logger = LoggerFactory.getLogger( getClass() );
+
+    @Test
+    public void testHttpClientProxyUtilUseDoesNotModifyContext()
+    {
+        final RemoteConnectionSettings remoteConnectionSettings = new RemoteConnectionSettings()
+        {
+            @Override
+            public void setUserAgentCustomizationString( String userAgentCustomizationString )
+            {
+            }
+
+            @Override
+            public void setRetrievalRetryCount( int retrievalRetryCount )
+            {
+            }
+
+            @Override
+            public void setQueryString( String queryString )
+            {
+            }
+
+            @Override
+            public void setConnectionTimeout( int connectionTimeout )
+            {
+            }
+
+            @Override
+            public String getUserAgentCustomizationString()
+            {
+                return null;
+            }
+
+            @Override
+            public int getRetrievalRetryCount()
+            {
+                return 3;
+            }
+
+            @Override
+            public String getQueryString()
+            {
+                return null;
+            }
+
+            @Override
+            public int getConnectionTimeout()
+            {
+                return 12000;
+            }
+        };
+        final RemoteProxySettings remoteProxySettings = new RemoteProxySettings()
+        {
+            @Override
+            public void setProxyAuthentication( RemoteAuthenticationSettings proxyAuthentication )
+            {
+            }
+
+            @Override
+            public void setPort( int port )
+            {
+            }
+
+            @Override
+            public void setNonProxyHosts( Set<String> nonProxyHosts )
+            {
+            }
+
+            @Override
+            public void setHostname( String hostname )
+            {
+            }
+
+            @Override
+            public void setBlockInheritance( boolean val )
+            {
+            }
+
+            @Override
+            public boolean isEnabled()
+            {
+                return false;
+            }
+
+            @Override
+            public boolean isBlockInheritance()
+            {
+                return false;
+            }
+
+            @Override
+            public RemoteAuthenticationSettings getProxyAuthentication()
+            {
+                return null;
+            }
+
+            @Override
+            public int getPort()
+            {
+                return 0;
+            }
+
+            @Override
+            public Set<String> getNonProxyHosts()
+            {
+                return null;
+            }
+
+            @Override
+            public String getHostname()
+            {
+                return null;
+            }
+        };
+        final DefaultRemoteStorageContext ctx = new DefaultRemoteStorageContext( null );
+        ctx.setRemoteConnectionSettings( remoteConnectionSettings );
+        ctx.setRemoteProxySettings( remoteProxySettings );
+
+        final HttpClient httpClient = new HttpClient();
+
+        // get last changed
+        long lastChanged = ctx.getLastChanged();
+
+        // 1st invocation, should modify it
+        HttpClientProxyUtil.applyProxyToHttpClient( httpClient, ctx, logger );
+        assertThat( ctx.getLastChanged(), greaterThan( lastChanged ) );
+
+        // now 2nd invocation, should not change
+        lastChanged = ctx.getLastChanged();
+        HttpClientProxyUtil.applyProxyToHttpClient( httpClient, ctx, logger );
+        assertThat( ctx.getLastChanged(), equalTo( lastChanged ) );
+    }
+
+}