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 m (Add comma, and replace 'they' with 'the lender' for clarity.) |
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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 | 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 == | ||
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* [[Materiality]] | * [[Materiality]] | ||
[[Category: | [[Category:Long_term_funding]] | ||
[[Category: | [[Category:Long_term_funding]] | ||
[[Category: | [[Category:Treasury_operations_infrastructure]] | ||
Revision as of 15:27, 20 July 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 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.
