Cross-default
A clause allowing a default under one agreement to trigger a default under another related agreement.
Related terms
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Covenant
A binding promise in a contract, loan or lease. Breaching a covenant can trigger remedies or enforcement rights.
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Collateral
An asset offered as security for a debt. If the borrower defaults, the lender may have rights to enforce against that asset.
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Secured lending
Lending supported by security over assets, giving the lender additional recovery rights if the borrower defaults.
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