Cross default

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.

See also

• Cross acceleration
• Default
• Event of default
• Loan agreement
• Materiality
• Seat at the table