USA
A subsidiary of a company which accounts for more than a certain percentage (typically 5% or 10%) of the consolidated assets or consolidated revenues of the borrower and its subsidiaries. For example, the loan agreement may provide that only material subsidiaries are required to be guarantors of the borrower's obligations under the loan agreement.
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.