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MAC – Material adverse change

MAC – Material adverse change

Dictionary

A usual condition of credit contract stipulating that in case of any adverse situation the Bank may terminate the contract based on Event of Default (EoD). Such negative situation might be for instance losing the license for core-business activities that would substantially effect the possibility of Borrower to repay the loan. Another example could be termination of main supplier/offtaker contract, so that this shows that assessment of MAC is relatively hard and could be different subject to each Bank. Given this it seems to be quite unable to claim EoD based on MAC and in case of legal disputes it could be hard for the Bank to win the case.

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