MAC clauses for a bilateral facility agreement

The concepts of material adverse change (MAC) or material adverse effect (MAE) are typically included in the following three key provisions of a facility agreement:

• • the definitions clause;
• • the list of representations; and
• • the list of events of default.

This guidance note sets out:

• • a sample MAE definition with drafting notes;
• • a sample MAC representation with drafting notes; and
• • a sample MAC event of default with drafting notes.

See MAC clauses for a bilateral facility agreement.