What is Cross-default?

What is Cross-default?

Cross-default is a common clause in borrowing documentation that allows creditors to demand repayment if it defaults on one of its obligations. Join Tim in this video where he takes us through this concept in more detail.
Overview

A cross-default clause in a borrowing document ensures that all creditors are allowed to demand repayment if the borrower formally defaults on one of its borrowings.

Key learning objectives:

  • Define cross-default

  • Explain the purpose of a cross-default clause

  • Explain when a company can be declared to be in technical default

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Summary
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