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.
References in periodicals archive ?
There is no 1MDB cross default on an RM800 million loan from the Social Security Organisation (SOCSO Loan).
Cross Collateralization: Although each hotel in a portfolio transaction is covered by an individual loan, related specifically to that hotel, all of the loans are tied together by a cross collateralization and cross default agreement.
a cross default clause, and (ii) if tenant fails to replenish the security deposit after landlord has applied any part of it to any rent or additional rent default.

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