Legal
Material adverse change
Also known as: MAC
status: draft
A broad contractual standard allowing action if a material negative change occurs in the originator, collateral, market, or transaction condition.
What to watch
Push for objective, transaction-specific language. Vague MAC clauses can become discretionary availability controls.
Referenced in 32 topics
Agency RMBS asset-classes Back leverage and fund financing playbooks Bridge / fix-and-flip asset-classes CMBS (conduit, SASB, large loan) asset-classes Credit agreement and indenture documentation Document coordination documentation Documentation negotiation playbooks Entity-level triggers mechanics ESG and sustainability-linked structures market-landscape Forward flow agreements structures Healthcare receivables asset-classes Market data and public datasets market-landscape Negative and affirmative covenants mechanics Ongoing portfolio management operations-lifecycle Participation structures structures Primary market process market-landscape Private placement / bespoke structures structures Questions to ask your legal team playbooks Reps, warranties, and enforcement documentation Risk retention rules legal Subscription finance / capital call lines structures Term sheet anatomy documentation Top deal process mistakes playbooks Top originator mistakes playbooks Transaction agreements documentation Transitioning between capital providers playbooks Treasury management for multi-facility originators playbooks Trigger negotiation strategies mechanics Upsizing and facility expansion lifecycle-events Warehouse facilities structures What capital providers care about playbooks Wind-down lifecycle-events