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.) |
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.) |
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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 | 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. | 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. | ||
Revision as of 15:26, 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 they will enjoy a 'seat at the table' in any refinancing negotiations with the defaulting borrower.
