Cross Default Threshold means, for a Party, the amount specified in Schedule 2 (Elections) in the Termination Currency. Cross Default Threshold means, with respect to Wells Fargo, an amount (including its equivalent in another currency)
equal to 3% of the Shareholders Equity
of Wells Fargo & Co.
What does cross acceleration mean?
Related Content
.
A clause which operates by defaulting a
borrower under Agreement A when it defaulted under Agreement B and the lender under Agreement B accelerates repayment.
What is the difference between cross default and cross acceleration?
A cross-acceleration clause is similar to the cross-default clause, except that the debt under the other debt agreement must have
been accelerated or otherwise been
made to be due and payable in full prior to its stated maturity before the default under the credit agreement is triggered.
What is a cross collateral cross default agreement?
A cross-collateralization clause generally provides
that the same collateral, often real property, secures multiple loans from the same lender
. … In contrast, a cross-default clause provides that an event of default under one loan constitutes as an event of default under a separate loan.
What happens after an event of default?
An event of default is a predefined circumstance that allows a lender to demand full repayment of an outstanding balance before it is due. … An event of default enables
the lender to seize any collateral that has been pledged and sell it to recoup the loan
.
What is a cross default clause?
Cross default is a
provision in a bond indenture or loan agreement that puts a borrower in default if the borrower defaults on another obligation
.
What is loan acceleration?
An
accelerated clause
is a term in a loan agreement that requires the borrower to pay off the loan immediately under certain conditions.
Can banks cross collateralize?
Cross collateralization clauses can easily be overlooked, leaving people unaware of the multiple ways they might lose their property. Financial institutions often cross collateralize property if
a customer takes out one of its loans
and then follows up with other financing from that same bank.
What is a default clause?
A default clause is
a provision in a legal contract that states what will happen if either party in a contract defaults or fails to hold up their end of the agreement
.
What is ISDA and CSA?
A
credit support annex (CSA)
is a document that defines the terms for the provision of collateral by the parties in derivatives transactions. It is one of four parts of a standard contract or master agreement developed by the International Swaps and Derivatives Association (ISDA).
How does cross collateralization work?
Cross-collateralization is
when one asset serves as collateral for more than one loan
. If a borrower is unable to repay any of the loans secured by the asset, the property can be seized and sold even if the borrower is current on the remaining loans.
Is cross collateralization legal?
Lenders cannot use your business’s property as
collateral without your consent
. Lenders obtain your consent to cross-collateralization through a dragnet clause, which may allow the lender to use the collateral for any loans or other obligations your business may owe the lender.
What is cross collateralization in music?
A
clause in recording and publishing agreements allowing the recording or publishing company to recoup outstanding advance balances from one album release with revenues and the next forthcoming release
(s).
What is a potential event of default?
A Potential Event of Default is
a Failure to Pay or Deliver, Breach of Agreement
(or other Event of Default) with an unexpired grace period, or where the grace period has expired but the Non-defaulting Party hasn’t (yet) given a notice of default actually accelerating the default into an actual Event of Default.
Can a default be reversed?
Once a default is recorded on your credit profile, you can’t have it removed before
the six years are
up (unless it’s an error). However, there are several things that can reduce its negative impact: Repayment. Try and pay off what you owe as soon as possible.
What is the difference between default and event of default?
Default or Event of Default
An event of default is any
of the possible things a bank wouldn’t want to happen to its borrowers
. A default is an event that in time or notice, or both, would mean an event of default. Considering the definitions of both, you would think they mean the same thing.
