Material Adverse Change Clauses in Commercial Real Estate Loans and Loan Renewals
Negotiating and Managing Loans in a Distressed Credit Market
Recording of a 90-minute premium CLE webinar with Q&A
This seminar will explain how MAC clauses are currently being addressed and interpreted in commercial mortgage loans and provide best practices for counsel in negotiating and managing loans.
- Common elements of MAC clauses
- Current trends
- Pending litigation
- Current state of case law
- Best practices for negotiating and managing commercial real estate loans
- Mitigating risks
- Be specific about conditions constituting a MAC
- Include reasonableness and good faith standards
- Include financial threshold for adverse change
- Watch language construction
- Include broad language to cover unknown risks
- Investors retain right to recover damages from lenders if loan is canceled
- Resolving conflicting positions
- Mitigating risks
The panel will review these and other key questions:
- How is the volatility of the current credit market impacting commercial real estate loans?
- What is the current state of the law regarding MAC clauses?
- How can counsel for lenders and borrowers best mitigate risk when negotiating MAC clauses and other loan terms in commercial mortgage loans?
Douglas S. Buck
Foley & Lardner
He has broad experience with real estate transactions involving lending and financing. He is experienced in... | Read More
He has broad experience with real estate transactions involving lending and financing. He is experienced in negotiating and documenting real estate workouts, foreclosures and restructurings.Close
Susan C. Tarnower
She practices in the area of real estate finance, focusing on commercial real estate loans. She previously worked as... | Read More
She practices in the area of real estate finance, focusing on commercial real estate loans. She previously worked as In-House Counsel for GMAC Commercial Mortgage Corporation and AMRESCO, Inc.Close
Christopher T. Nixon
He represents national CMBS and portfolio lenders in servicing loans for all types of income-producing properties... | Read More
He represents national CMBS and portfolio lenders in servicing loans for all types of income-producing properties across the United States.Close
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Strafford will process CLE credit for one person on each recording. All formats include program handouts.
CLE On-Demand Audio