Cash reserves and Material adverse effect: Difference between pages

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1.
(MAE).  


The total of cash deposits, short-term bank deposits, money market instruments and Treasury bills.
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. 


2.


An organisation's cash reserves are the back-up funds available to meet its needs for cash, including unanticipated needs and opportunities.
== See also ==
* [[Event of default]]
* [[Loan agreement]]
* [[Material adverse change]]
* [[Adverse event]]


 
[[Category:Bank_Lending]]
Sometimes also known as 'strategic cash'.
[[Category:Debt_Capital_Markets]]
 
[[Category:Legal_Documentation]]
 
== See also ==
* [[Cash]]

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