Collective action clause (CAC) - Financial definition
Concise definition of the term collective action clause
Standardized contractual elements, through which a majority of the holders of a bond can make certain changes to the terms of the bond, which are subsequently legally binding for all holders of the bond.
Comprehensive definition of the term collective action clause
Changes that can be made include for example the extension of the bond's maturity or the reduction of payments on interest or principal.