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Simple English definitions for legal terms

cross-default clause

Read a random definition: American share

A quick definition of cross-default clause:

A cross-default clause is a rule in a contract that says if someone doesn't pay back one loan, they also default on another loan. It's like a domino effect where one mistake can cause a lot of problems.

A more thorough explanation:

A cross-default clause is a provision in a contract that states if a borrower defaults on one debt obligation, it will trigger a default on another obligation. This means that if a borrower fails to make payments on one loan, it could cause them to default on other loans they have.

Let's say a company has taken out two loans, one from Bank A and another from Bank B. Both loans have a cross-default clause. If the company defaults on the loan from Bank A, the cross-default clause will be triggered, and the company will also be in default on the loan from Bank B. This means that Bank B can demand immediate repayment of the loan, even if the company has been making payments on time.

Another example could be a landlord who has a cross-default clause in their lease agreement with a tenant. If the tenant fails to pay rent, it could trigger a default on other leases the landlord has with other tenants in the same building.

These examples illustrate how a cross-default clause can have serious consequences for borrowers and tenants. It is important to read and understand the terms of any contract before signing it, especially if it includes a cross-default clause.

cross-collateralization | cross-defendant

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Dkk
19:42
SEO is big money
2016 pushed the conservative party into populism irreversibly
Dkk
19:43
Maybe, but if this is populism, then every election is populist.
19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
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