Cross acceleration

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 with the other lender, will constitute a 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.

See also

• Acceleration
• Default
• Event of default
• Cross default
• Loan agreement
• Materiality