A material adverse change (MAC) clause prohibits the bank from withdrawing its commitment under certain conditions.

Name: A material adverse change (MAC) clause prohibits the bank from withdrawing its commitment under certain conditions.
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Question

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A material adverse change (MAC) clause actually allows a bank to withdraw its commitment or alter the terms of an agreement if significant negative changes occur in the borrower's financial condition or in the broader economic environment.

A Material Adverse Change (MAC) Clause Prohibits the Bank from Withdrawing