ALLY Cross-Default Clause Samples
The ALLY Cross-Default clause establishes that a default under one agreement with ALLY or its affiliates triggers a default under other related agreements. In practice, this means if a party fails to meet its obligations—such as missing a payment or breaching terms—on any contract with ALLY, that failure is treated as a default across all contracts with the group. This mechanism allows ALLY to respond swiftly to financial distress or non-compliance by a counterparty, ensuring that risk is managed consistently and reducing the chance of selective defaulting on obligations.
ALLY Cross-Default. ALLY does either of the following: (A) suspends, withdraws, or terminates making advances on the ALLY Loan Agreements or (B) reduces or restricts the availability of funds to Supreme Indiana under the ALLY Loan Agreements, or alters the conditions to making advances under the ALLY Loan Agreements in a manner that has a material adverse effect on the acquisition of Pool Units by Supreme Indiana.