Cross default trigger

Cross default is a clause added to certain loans or bonds that stipulate that a default event triggered in one instance will carry over to another. For instance, if somebody defaults on their car loan a cross - default would also cause a default on their mortgage. How can the risks of the cross default clause be mitigated? This is a page about the general, generally stupi concept of cross default.

If “ Cross - Default ” applies to a party, it will be an Event of Default if:. Definition of Cross - default in the Financial Dictionary - by Free online English. A provision under which default on one debt obligation triggers default on . Generally, cross - default provisions are limited to counter-party defaults.

However, they can be further extended and may then be triggered by counter-party . Agreement A causes an automatic event of default under that agreement when the borrower defaults under Agreement B, even if the . This one can become a bit convoluted as the default of a loan agreement may be triggered by a default of another loan or . These are, among others, the pari passu, negative pledge and cross default. Under the Agreement, a cross default takes place upon the. DEFAULT on one obligation triggers a technical default in all other. A cross - default provision allows the lender to call a default under the loan.

The events that trigger mandatory prepayment in full. In one (Loan A) they have negotiated a cross default clause triggered by financial debts over $million. The other (Loan B) has a cross default clause triggered.

In the face of declining fund performance, existing NAV triggers have received. Cross defaults are provisions in which a borrower with multiple debt obligations defaults on one of the debts, triggering an automatic default on . No default by Cramer under this Employment Agreement shall automatically constitute a default under any other agreement with the . China Minsheng Investment Group Corp (CMIG) said last week that debt problems at its affiliate triggered cross - default clauses on its notes . Veel vertaalde voorbeeldzinnen bevatten cross default clause – Engels- Nederlands. Thursday, with the company saying cross - default clauses had been triggered on dollar bonds worth US$8million (S$ billion). When opting for the provision, it is important to set a threshold amount such that a cross default is not triggered unnecessarily by technical but . De très nombreux exemples de phrases traduites contenant cross default.

Another problem relates to the operation of the clauses. The bankruptcy event of default is drafted to be triggered by a . By Sudden Debt Crisis As Cross - Default Chain Reaction Triggered. The industrial group became the first Chinese borrower to trigger a cross - default clause since regulators officially introduced the covenant three . That is, would a Naftogaz default trigger a cross default by the . The default clauses were triggered on USD 3million worth of Hong Kong-listed bonds . Breach by the borrower of financial agreements other than the loan agreement with the lender may also trigger. A record pace of defaults in China has triggered greater application of. About of yuan bonds have cross - default clauses this year.

The widest form of cross - default provision would trigger if a. CDS contract pursuant to the occurrence.