A cross-default provision provides that defaulting on one loan makes the venture liquidate all other loans.

Name: A cross-default provision provides that defaulting on one loan makes the venture liquidate all other loans.
Brand: Quizplus
Rating: 4.7 (50 reviews)

Question

Quizplus · Accepted Answer

A cross-default provision means that a default on one loan can trigger a default on another loan, but it does not necessarily require the liquidation of all other loans. It allows lenders to declare a default if the borrower defaults on another obligation.

A Cross-Default Provision Provides That Defaulting on One Loan Makes