Cross default: Difference between revisions
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''Loan documentation.'' | ''Loan documentation.'' | ||
A clause in a loan agreement. It states that a default with any other lender will constitute a default under this agreement. | A clause in a loan agreement. | ||
It states that a default with any 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. | 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 == | == See also == | ||
* [[Cross acceleration]] | |||
* [[Default]] | * [[Default]] | ||
* [[Event of default]] | * [[Event of default]] | ||
* [[Loan agreement]] | * [[Loan agreement]] | ||
* [[Materiality]] | * [[Materiality]] | ||
* [[Seat at the table]] | |||
[[Category:Long_term_funding]] | |||
[[Category:Treasury_operations_infrastructure]] | |||
Latest revision as of 01:42, 22 May 2021
Loan documentation.
A clause in a loan agreement.
It states that a default with any 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.
