Material adverse effect

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Revision as of 15:22, 20 July 2014 by imported>Doug Williamson (Simplify to 'is an event of default', replacing 'will constitute an event of default'.)
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(MAE).

A clause in a loan agreement.

It is intended as a 'catch-all' clause and states that if there is a change in the circumstances of the borrower that materially and adversely affects the borrower's ability to repay, then this is an event of default.


See also