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 in Agreement B. Cross-default provisions therefore have a domino effect.
+ cross-default
USA
A clause which operates by automatically defaulting a borrower under Agreement A when it defaulted under Agreement B. A cross-default provision effectively gives the lender under Agreement A the benefit of the default provisions in Agreement B. Cross-default provisions therefore have a domino effect.
In contrast to a cross-default, a cross-acceleration clause in Agreement A causes an event of default under Agreement A when the borrower defaults under Agreement B, only if the lender under Agreement B accelerates repayment.
Related links

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Look at other dictionaries:

  • Cross Default — A provisions in a bond indenture or loan agreement that puts the borrower in default if the borrower defaults on another obligation. Also known as cross acceleration . This provides more security to the lender. You can think of this as an out… …   Investment 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 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-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

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