Material Adverse Change (MAC)

Definition:

Typically a contractual condition that reflects the impact of an event after the date of signing the contract, which would be expected to result in a material adverse effect. This term is used as a Condition Precedent (CP), and is often connected to an Event of Default provision. This condition may allow a lender/purchaser to be released from certain of its obligations under the contract because there has been a material negative change of circumstances.

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