Cross Default Clause

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Definition: Cross Default Clause

Cross Default Clause
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Full Definition of Cross Default Clause

A cross-default clause is common stipulation under loan agreements in which a bank has a right to deny access to balances in any or all loan accounts to a borrower (with several loans at the same bank) even if only one loan goes into default. In fact, a bank can apply all available balance(s) in all account(s) of the borrower to satisfy any loan in default. Bankers justify this clause on the logic that a default sours the bank client relationship, not a just a loan agreement.

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https://payrollheaven.com/define/cross-default-clause/
Modern Language Association (MLA):
Cross Default Clause. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
May 18, 2024 https://payrollheaven.com/define/cross-default-clause/.
Chicago Manual of Style (CMS):
Cross Default Clause. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/cross-default-clause/ (accessed: May 18, 2024).
American Psychological Association (APA):
Cross Default Clause. PayrollHeaven.com. Retrieved May 18, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/cross-default-clause/

Definition Sources

Definitions for Cross Default Clause are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 30th September, 2019 | 0 Views.