Cross acceleration: Difference between revisions
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imported>Doug Williamson (Create the page. Source: ACT CFF Reading 4.3.1 p13, Documentation 1 April 2014.) |
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Revision as of 17:39, 13 June 2014
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 with the other lender, will constitute a 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.