Cross acceleration

From ACT Wiki
Revision as of 01:42, 22 May 2021 by imported>Doug Williamson (Links ordering.)
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to navigationJump to search

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