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 benefit of the default provisions in Agreement B.
In contrast to a cross-acceleration, a cross-default clause in Agreement A causes an automatic event of default under that agreement when the borrower defaults under Agreement B, even if the lender under Agreement B does not accelerate repayment.
Cross-acceleration clauses are common in indentures and investment-grade credit agreements.
Related terms

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

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