Lease and Material adverse effect: Difference between pages

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A contract whereby the owner of an asset (the lessor) offers rights to use the asset to another party (the lessee) for a certain period.  
(MAE).
 
In return the lessee makes payments of pre-determined amounts to the lessor.
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 will constitute an event of default.




== See also ==
== See also ==
* [[Assets]]
* [[Event of default]]
* [[Contract]]
* [[Loan agreement]]
* [[Finance lease]]
* [[Material adverse change]]
* [[Lessee]]
* [[Adverse event]]
* [[Lessor]]
 
* [[Operating lease]]
[[Category:Bank_Lending]]
* [[Sale and leaseback]]
[[Category:Debt_Capital_Markets]]
[[Category:Legal_Documentation]]

Revision as of 07:35, 5 July 2014

(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 will constitute an event of default.


See also