Event Cross Acceleration Sample Clauses
The event-cross-acceleration clause allows a lender or creditor to declare a default and accelerate repayment obligations if the borrower defaults on another significant financial agreement. In practice, this means that if a borrower fails to meet payment terms or triggers a default under a separate loan or credit facility, the lender under this agreement can demand immediate repayment of outstanding amounts. This clause is designed to protect lenders by enabling them to act quickly if a borrower's overall financial stability is threatened, thereby managing risk and preventing further losses.
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Event Cross Acceleration if a default, event of default or other similar condition or event (however described) in respect of the Borrower or any Designated Subsidiary occurs or exists under any indentures, credit agreements, instruments or other agreements evidencing or relating to Debt thereof (individually or collectively) in an aggregate principal amount in excess of 2.5% of Consolidated Shareholders’ Equity (or the Equivalent Amount thereof or the equivalent thereof in any other currency) and such default, event or condition has resulted in such Debt becoming due and payable thereunder before it would otherwise have been due and payable, unless such default, event or condition has been remedied or waived in accordance with the provisions of the relevant indentures, credit agreements, instruments or other agreements and the acceleration of Debt resulting therefrom has been rescinded.