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Cross-Default

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Cross-default
A provision under which default on one debt obligation triggers default on another debt obligation.

Cross-Default
A provision in a loan agreement or other debt obligation stating that the borrower defaults if he/she goes into default on any other obligation. For example, a cross-default provision may state that a person defaults on his car lease if he defaults on his mortgage. This provision exists to protect the lender.


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The firm stressed that, having taken legal advice, it was "confident" the Government could not also seize its East Anglia and c2c franchises and would fight any moves for cross-default.
The cross-default provisions relating to the Company's other indebtedness have been eliminated.
The privately held company, which owns 13 dailies as well as assorted non-dailies and city magazines, also gained agreement on the extension of a cross-default which stems from the overdue interest payment.
 
 
 
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