Cross-Acceleration

Definition:

Common clause in an Indenture and investment-grade Credit Agreement. A Cross-Acceleration provision operates by defaulting an issuer/borrower under one agreement when such issuer/borrower defaults under another agreement and the bondholders/lender(s) accelerates repayment. In contrast to Cross-Acceleration, a Cross-Default clause in one agreement causes an automatic event of default under that agreement when the issuer/borrower defaults under another agreement, even if the bondholders/lender(s) under the latter agreement do not accelerate repayment.

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