Cross acceleration

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Revision as of 15:26, 20 July 2014 by imported>Doug Williamson (Replace 'with the other lender, will constitute a default' with 'under another loan agreement, is also an event of default', for clarity.)
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Loan documentation.

A clause in a loan agreement. It states that the acceleration of a loan with any other lender, following an event of default under another loan agreement, is also an event of default under this agreement.

It is designed for the benefit of the lender to ensure that they will enjoy a 'seat at the table' in any refinancing negotiations with the defaulting borrower.

See also