This provides more security to the lender. You can think of this as an "out-clause" to the contract.
Investment dictionary. Academic. 2012.
cross-default — A clause which operates by automatically defaulting a party under Agreement A where it has defaulted under Agreement B. A cross default provision effectively gives the non defaulting party under Agreement A the benefit of the default provisions… … Law dictionary
Cross Default Clauses — Cross default clauses are triggered automatically when a lender declares that a loan is in default. Such clauses might mean that other loans and borrowing instruments made to the borrower by the lender and by other lenders are also in default … Financial and business terms
Cross-Default-Klausel — Die Cross Default Klausel ist eine Vereinbarung in internationalen Kreditverträgen oder Anleihebedingungen, wonach eine Vertragsstörung bereits eintreten soll, wenn der Kreditnehmer im Verhältnis zu anderen Gläubigern vertragsbrüchig wird, ohne… … Deutsch Wikipedia
cross-default clause — The most onerous clause in a loan agreement, stating that if the borrower defaults on one loan, any other loans may become repayable. The cross default clause is activated when another lender is in a position to call a default on its loan or an… … Accounting dictionary
Cross default — A provision under which default on one debt obligation triggers default on another debt obligation. The New York Times Financial Glossary … Financial and business terms
cross default — Provision in the loan documents in which the debtor agrees that default on one loan will also constitute default on other obligations to the creditor. American Banker Glossary … Financial and business terms
cross-default — A provision under which default on one debt obligation triggers default on another debt obligation. Bloomberg Financial Dictionary … Financial and business terms
Cross-Default-Klausel — bes. im internationalen Finanzierungsgeschäft vereinbarte Kündigungsmöglichkeit von Kreditverhältnissen bei Verzug oder anderen Vertragsverletzungen des Schuldners. Vgl. auch ⇡ Default Klausel … Lexikon der Economics
cross-acceleration — USA A clause which operates by defaulting a borrower under Agreement A when it defaulted under Agreement B and the lender under Agreement B accelerates repayment. A cross acceleration provision effectively gives the lender under Agreement A the… … Law dictionary
Default-Klausel — Die Default Klausel (engl. default = „Leistungsstörung, Verzug“) ist eine Vereinbarung in internationalen Anleihebedingungen oder in Kreditverträgen, wonach der Gläubiger das Recht eingeräumt bekommt, den Anleihe oder Kreditbetrag sofort fällig… … Deutsch Wikipedia
