Material adverse change: Difference between revisions
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imported>Doug Williamson m (Spacing 22/8/13) |
imported>Doug Williamson (Amend to align with ACT Corporate Finance & Funding reading 4.3.1 p13 Documentation 1 April 2014. Categorise the page. Link with new Material adverse effect page.) |
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A clause in a loan agreement. | 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 | Normally it is intended as a 'catch-all' clause and states that if ''in the opinion of the lender'' there is a change in the circumstances of the borrower 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'. | Not surprisingly this is a contentious clause, depending on who defines 'material'. | ||
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* [[Event of default]] | * [[Event of default]] | ||
* [[Loan agreement]] | * [[Loan agreement]] | ||
* [[Material adverse effect]] | |||
[[Category:Bank_Lending]] | |||
[[Category:Debt_Capital_Markets]] | |||
[[Category:Legal_Documentation]] | |||
Revision as of 17:15, 13 June 2014
(MAC).
A clause in a loan agreement.
Normally it is intended as a 'catch-all' clause and states that if in the opinion of the lender there is a change in the circumstances of the borrower 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'.
