Cross Default

Cross Default

A provision in some bonds stating that the issuer shall be considered in default if the issuer defaults on any other of its obligations or liabilities. This provides extra protection for bondholders.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
'There are consequences like a cross default provision, which means that a default in contract A will trigger a default in contract B, C, D, E, and so on.
Rating Concerns: Concerns include MMLP's high leverage, limited access to capital markets in the current environment, its small size, and the possibility for cross default with its parent, MRMC.
He argued that failure to settle the payment would have exposed the country to the risk of 1MDB's cross default over all its bonds.
MPT's interests in the hospitals to be acquired will be subject to a master lease and mortgage loan arrangements with cross default provisions and backed by a corporate guaranty.
In conjunction with the agreement, MPT's interests in the hospitals will be subject to a master lease and mortgage loan arrangements with cross default provisions and backed by a corporate guaranty.
the threat of cross default. This allowed Sunstone (and its bondholders)
Among other aspects, the Sukuk benefits from a negative pledge and a cross default clause.
The financial covenants are similar to those on senior debt and include a cross default for amounts exceeding AUD25m and a review under certain change-of-control situations.
The review was prompted by the publication of Moody's methodology on enhanced loans and reflected the presence of cross default clauses within the affected loan contracts that permit the lenders to declare an early amortization of the loans if the borrowers default under certain other obligations.
The terms and conditions of the bond's documentation, which are applicable under English law, include a negative pledge clause and a cross default and cross acceleration provision.
(ASX:RGH) said Monday that it has breached a loan covenant on a A$324 million debt facility, triggering a cross default on other loan facilities.

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