Link cross in the Construction Contract

Aug 6th, 2022
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  3. Discover the top and right toolbars and locate the option to link cross of your Construction Contract.
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Cross default is a clause added to certain loans or bonds that stipulates 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.
A cross-default clause is a standard clause in borrowing documents. It ensures that if a borrower formally defaults on a specific borrowing, all other borrowings with cross-default language are automatically declared in default as well.
This is not to say that cross-default provisions never are enforceable, but the party seeking enforcement likely will face an uphill battle. The chief issue that courts consider when confronted with a cross-default clause is whether the multi-obligation lease arrangement is indivisible under state law.
Remedies for the Non-Defaulting Party: The Default Clause typically outlines the remedies available to the non-defaulting party, such as termination of the contract, seeking damages, or invoking performance bonds.
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. For instance, a cross-default clause in a loan agreement may say that a person automatically defaults on his car loan if he defaults on his mortgage.
Landlords with multi-obligation lease arrangements often attempt to intertwine distinct obligations by incorporating a cross-default clause: a contractual provision under which default on one debt obligation triggers default on another obligation. Blacks Law Dictionary (11th ed.
A cross-default provision is a provision in an agreement that puts a party in default of one agreement if that party defaults on a separate agreement between the same parties.
For clarity, a syndicated lending transaction is a transaction where multiple lenders congregate to provide a loan facility to a borrower. In this situation, the CD clause is used to ensure that when one financing agreement is defaulted, all the others between the borrower and lender are also defaulted.

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