Cross acceleration: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson m (Add comma, and replace 'they' with 'the lender' for clarity.) |
imported>Doug Williamson (Layout.) |
||
| Line 1: | Line 1: | ||
''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. | ||
| Line 13: | Line 14: | ||
* [[Materiality]] | * [[Materiality]] | ||
[[Category:Long_term_funding]] | [[Category:Long_term_funding]] | ||
[[Category:Treasury_operations_infrastructure]] | [[Category:Treasury_operations_infrastructure]] | ||
Revision as of 14:54, 4 December 2015
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.
