Cross-Default/Cross Collateralization Clause

Summary

This cross-default/cross collateralization clause is for use in a commercial real property acquisition loan agreement and provides that if the borrower has additional loans from the lender, a default under any one of the loans will be considered as a default under all of the loans. This clause includes practical guidance. For a full listing of key content covering construction, see Commercial Real Estate Acquisition Loan Resource Kit. For a full listing of key content covering acquisition financing, see Junior Associate Real Estate Resource Kit (Acquisition Finance). For a full listing of key content covering mezzanine financing, see Mezzanine Financing (Commercial Real Estate) Resource Kit. For more on acquisition loan agreements, see Acquisition Loan Agreements. For a template of an acquisition loan agreement see, Loan Agreement (Acquisition Financing).