Material adverse change

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Revision as of 09:24, 22 August 2013 by imported>Doug Williamson (Spacing 22/8/13)
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(MAC).

A clause in a loan agreement.

Normally it is intended as a 'catch-all' clause and states that if there is a change in the circumstances of the lender that is both material and adverse, then this will constitute an event of default.

Not surprisingly this is a contentious clause, depending on who defines 'material'.


See also