Cross acceleration

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Revision as of 15:27, 20 July 2014 by imported>Doug Williamson (Add comma, and replace 'they' with 'the lender' for clarity.)
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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.

See also