Material adverse change

(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'.

See also

• Event of default
• Loan agreement
• Material adverse effect