Cross acceleration: Difference between revisions
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imported>Doug Williamson m (Replace 'with the other lender, will constitute a default' with 'under another loan agreement, is also an event of default', for clarity.) |
imported>Doug Williamson (Links ordering.) |
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''Loan documentation.'' | ''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. | 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 the lender will enjoy a 'seat at the table' in any refinancing negotiations with the defaulting borrower. | |||
== See also == | == See also == | ||
* [[Acceleration]] | * [[Acceleration]] | ||
* [[Cross default]] | |||
* [[Default]] | * [[Default]] | ||
* [[Event of default]] | * [[Event of default]] | ||
* [[ | * [[Financial covenant]] | ||
* [[Grace period]] | |||
* [[Loan agreement]] | * [[Loan agreement]] | ||
* [[Materiality]] | * [[Materiality]] | ||
* [[Waiver]] | |||
[[Category: | [[Category:Long_term_funding]] | ||
[[Category: | [[Category:Treasury_operations_infrastructure]] | ||
Latest revision as of 01:42, 22 May 2021
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 the lender will enjoy a 'seat at the table' in any refinancing negotiations with the defaulting borrower.
