COLLATERAL; LOANS CROSS-DEFAULTED AND CROSS-COLLATERALIZED Sample Clauses
This clause establishes that all loans covered by the agreement are both cross-defaulted and cross-collateralized. In practice, this means that a default on one loan will trigger a default on all other related loans, and the collateral securing any one loan will also secure the others. For example, if a borrower defaults on one loan, the lender can treat all loans as being in default and pursue remedies against all collateral pledged. The core function of this clause is to strengthen the lender’s position by linking the obligations and collateral of multiple loans, thereby reducing the lender’s risk and simplifying enforcement in the event of default.
COLLATERAL; LOANS CROSS-DEFAULTED AND CROSS-COLLATERALIZED. All Loans and other Indebtedness shall be secured by Borrower’s grant to the Lender of a first priority security interest in and to the Collateral (except that Lender shall maintain a second priority security interest in the Pledged Stock as herein provided). Borrower acknowledges and agrees that all Loans shall be cross-defaulted, meaning that a default under any of the Loans shall constitute a default under all Loans, and (b) all Loans shall be cross-collateralized, meaning that the Collateral, and all other collateral in which the Lender is granted a security interest in connection with the Loans, shall secure all of the Loans, and all other Indebtedness.