Guarantor Cross Default Clause Samples
A Guarantor Cross Default clause establishes that a default by the guarantor under any other agreement or financial obligation can trigger a default under the current contract. In practice, this means that if the guarantor fails to meet payment or performance obligations elsewhere—such as defaulting on a loan or another guarantee—the default is treated as if it occurred under the present agreement as well. This clause is designed to protect the beneficiary by allowing them to take action or enforce remedies if the guarantor's financial stability is compromised in other dealings, thereby reducing the risk of loss due to the guarantor's broader financial difficulties.
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Guarantor Cross Default. A default of the obligations of Guarantor under any other agreement for debt of borrowed money to which it is a party, which default is not cured within any applicable grace period which would permit the debt-holder to accelerate the obligations thereunder.
Guarantor Cross Default. The Guarantor must ensure its Indebtedness is paid when due (having due regard to any applicable grace period), provided that it shall not be a breach of this subsection if the Guarantor fails to pay its Indebtedness when due but the aggregate amount of such Indebtedness is less than $50,000,000 or its equivalent. Each of the Guarantor Financial Covenants set forth in Sections 6.09(c) to (f) (inclusive) above shall be tested on each Determination Date by reference to each rolling twelve (12) month Measurement Period, and compliance shall be evidenced in the Compliance Certificates.
Guarantor Cross Default. Failure by any Guarantor to pay when due any Indebtedness in an outstanding principal amount of $500,000.00 or more in the aggregate (“Material Guarantor Indebtedness”); or the default by any Guarantor in the performance (beyond the applicable grace period with respect thereto, if any) of any term, provision or condition contained in any loan agreement or other debt instrument, or any other event shall occur or condition exist, the effect of which default, event or condition is to cause, or to permit the holder(s) of such Material Guarantor Indebtedness to cause, such Material Guarantor Indebtedness to become due prior to its stated maturity or any commitment to lend under any such loan agreement or other debt instrument to be terminated prior to its stated expiration date; or any Material Guarantor Indebtedness shall be declared to be due and payable or required to be prepaid or repurchased (other than by a regularly scheduled payment) prior to the stated maturity thereof; unless a substitute guarantor acceptable to Lender in its sole discretion enters into a Guaranty, in substantially the form as that entered into by the original Guarantor, within thirty (30) days after the date of such Guarantor cross-default.
Guarantor Cross Default. Either Guarantor or any of their subsidiaries (i) fail to make any payment in respect of (A) any Indebtedness or Contingent Obligation owing to either Agent or an Affiliate of either Agent or (B) in respect of any Indebtedness or Contingent Obligation having an aggregate principal amount of more than $1,000,000.00, when due (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise); or (ii) fail to perform or observe any other material condition or covenant, or any other event shall occur or condition exist, under any agreement or instrument relating to any such Indebtedness or Contingent Obligation, if, after expiration of any grace or cure period therein provided, the effect of such failure, event or condition is to cause, or to permit the holder or holders of such Indebtedness or beneficiary or beneficiaries of such Indebtedness (or a trustee or agent on behalf of such holder or holders or beneficiary or beneficiaries) to cause such Indebtedness to be declared to be due and payable prior to its stated maturity, or such Contingent Obligation to become payable or cash collateral in respect thereof to be demanded; or
Guarantor Cross Default. Failure by Guarantor to pay within any applicable notice and grace period after the same becomes due any indebtedness, whether direct or contingent, owing to Lender or any Affiliate of Lender (other than the Loan) or any indebtedness, whether direct or contingent, in an outstanding principal amount of $25,000,000 or more in the aggregate owing to any other Person or Persons;
Guarantor Cross Default. Failure by REIT to pay when due any indebtedness, liability or obligation, whether direct or contingent, owing to Lender or any Affiliate of Lender (other than the Loan) and such failure continues unremedied for a period of five (5) days after ▇▇▇▇▇▇▇▇’s receipt of written notice thereof from Lender;
Guarantor Cross Default. Any event of default (howsoever described) occurs under the Guarantor Credit Agreement.