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Yes, not only ‘LMA style’ loan documentation but also usual ‘in-house’ loan agreements typically contain material adverse change provisions (MAC) that entitle a lender to terminate an agreement and to cancel commitments. Similar clauses targeting deterioration of the condition of a borrower, borrower group or the value of the collateral granted are also contained in the general terms and conditions (GTC) of some Bulgarian banks.
However, the lender's rights under such MAC provisions are limited by law and such provisions could be invalidated in court if not objectively justified. In particular, MAC provisions cannot be enforced due to the occurrence of a crisis per se and their enforceability should be assessed on a case-by-case basis. A specific-case-based approach is usually applied requiring that the relevant forum considers, inter alia, the direct effect of the crisis to the borrower's position, contingency measures adopted by the borrower, and the degree of care exercised by the parties to the loan relationship.
No specific statutory ‘force majeure’ provisions exist and are typically not contractually foreseen that would entitle a borrower to prevent a MAC termination by a lender in
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