What is CROSS-DEFAULT CLAUSE?

A clause in a LOAN, BOND, or DERIVATIVE agreement indicating that a technical DEFAULT on one obligation triggers a technical default in all other obligations. Cross default clauses are commonly used in credit agreements and MASTER AGREEMENTS.

More On This Topic



Link to This Definition

Did you find this definition of CROSS-DEFAULT CLAUSE helpful? You can share it by copying the code below and adding it to your blog or web page.
Edited and fact checked by James: Google +