Cross-Default and Cross-Acceleration Clause Samples

Cross-Default and Cross-Acceleration. Any Loan Party or any Restricted Subsidiary (A) fails to make any payment beyond the applicable grace period with respect thereto, if any (whether by scheduled maturity, required prepayment, acceleration, demand, or otherwise) in respect of any Indebtedness (other than Indebtedness hereunder and intercompany Indebtedness) having an aggregate outstanding principal amount equal to or greater than the Threshold Amount; (B) fails to observe or perform any other agreement or condition relating to any such Indebtedness, or any other event occurs (other than a default or an event of default in respect of the observance of or compliance with any financial maintenance covenant, which is addressed by clause (C) below), the effect of which default or other event is to cause, or to permit the holder or holders of such Indebtedness (or a trustee or agent on behalf of such holder or holders or beneficiary or beneficiaries) after the expiration of any applicable grace or cure period therefor to cause, with the giving of notice if required, such Indebtedness to become due or to be repurchased, prepaid, defeased or redeemed (automatically or otherwise), in each case, prior to its Stated Maturity; provided that this clause (e)(B) shall not apply to (x) secured Indebtedness that becomes due as a result of the sale or transfer or other Disposition (including a Casualty Event) of the property or assets securing such Indebtedness permitted hereunder and under the documents providing for such Indebtedness and such Indebtedness is repaid when required under the documents providing for such Indebtedness, (y) events of default, termination events or any other similar event under the documents governing Swap Contracts for so long as such event of default, termination event or other similar event does not result in the occurrence of an early termination date or any acceleration or prepayment of any amounts or other Indebtedness payable thereunder or (z) Indebtedness that upon the happening of any such default or event automatically converts (or the same remedy of the holders of such Indebtedness is to convert) into Equity Interests (other than Disqualified Stock or, in the case of a Restricted Subsidiary, Disqualified Stock or Preferred Stock) in accordance with its terms; provided, further, that such failure is unremedied and is not validly waived by the holders of such Indebtedness in accordance with the terms of the documents governing such Indebtedness prior to any termination of...

Cross-Default and Cross-Acceleration. 23.5.1 Any of the following occurs in respect of any Obligor or Material Subsidiary: (a) any of its Financial Indebtedness (or any amount payable in respect of its Financial Indebtedness) is not paid when due (after the expiry of any originally applicable grace period); or (b) any of its Financial Indebtedness: (i) is declared to be or otherwise becomes prematurely due and payable prior to its stated maturity or, if the Financial Indebtedness arises under a guarantee, prior to the stated maturity of the Financial Indebtedness which is the subject of the guarantee; or (ii) is placed on demand; (iii) is capable of being declared by or on behalf of a creditor to be prematurely due and payable or of being placed on demand; or (iv) is terminated or closed out or is capable of being terminated or closed out, in each case, as a result of an event of default or any provision having a similar effect (howsoever described); or (c) any commitment of a provider of Financial Indebtedness to it is cancelled or suspended, or is capable of being cancelled or suspended by such provider, in each case, as a result of an event of default or any provision having a similar effect (howsoever described). 23.5.2 No Event of Default will occur under this Clause 23.5 if the aggregate amount of Financial Indebtedness or commitment for Financial Indebtedness falling within Clauses 23.5.1(a) to (c) is less than R10,000,000 (or its equivalent in another currency or currencies).

Cross-Default and Cross-Acceleration. Even if the issuer timely and duly complies with all its obligations under the prospectus, the bondholders may be still entitled to declare an event of default and accelerate payments if the issuer has failed to perform its obligations under another public external debt obligation. This is the “cross default” provision. It creates a sort of domino effect in all outstanding debt and may be triggered because of: (i) any event of default or default in any agreement or instrument related to any public external indebtedness—other than the bonds—of the issuer, its Central Bank or any governmental agency guaranteed by the issuer, (ii) the issuer, or Central Bank fails generally to pay or perform its obligations under public external indebtedness as they become due, or (iii) the issuer or the Central Bank shall declare a moratorium on the payment or performance of such obligations. A very important aspect of the cross-default clause is the definition of “external indebtedness” as it is what will determine the triggering of the cross-default clause. While a cross-default gives the lender the ability to trigger a default under one bond if the issuer is in default under another debt obligation (e.g., another bond or loan agreement), a cross- acceleration provision gives the holder the ability to declare an event of default only after another creditor accelerates its loan or if another bondholder accelerates another note. In other words, the issuer may be in default on another debt obligation, but the creditors or investors of such debt may still not have accelerated such debt and therefore the cross-default clause would not be triggered. Thus, under a cross acceleration provision the default is triggered upon the actual acceleration of another external indebtedness (or debt obligation), and not simply the right of the other lender to accelerate — an actual acceleration is required.

Cross-Default and Cross-Acceleration. (a) Any Financial Indebtedness of the Borrower is not paid when due nor within any originally applicable grace period. (b) Any Financial Indebtedness of the Borrower is declared to be or otherwise becomes due and payable prior to its specified maturity as a result of an event of default (however described). (c) Any commitment for any Financial Indebtedness of the Borrower is cancelled or suspended by a creditor of the Borrower as a result of an event of default (however described). (d) Any creditor of the Borrower becomes entitled to declare any Financial Indebtedness of the Borrower due and payable prior to its specified maturity as a result of an event of default (however described).

Cross-Default and Cross-Acceleration. (a) Any Financial Indebtedness of any member of the Group is not paid when due or within any originally applicable grace period. (b) Any Financial Indebtedness of any member of the Group is declared to be or otherwise becomes due and payable prior to its specified maturity as a result of an event of default (however described). (c) Any commitment for any Financial Indebtedness of any member of the Group is cancelled or suspended by a creditor of any member of the Group as a result of an event of default (however described). (d) Any creditor of any member of the Group becomes entitled to declare any Financial Indebtedness of any member of the Group due and payable prior to its specified maturity as a result of an event of default (however described). (e) No Event of Default will occur under this Clause 22.5 if the aggregate amount of Financial Indebtedness or commitment for Financial Indebtedness falling within paragraphs (a) to (d) above is less than $10,000,000 (or its equivalent in any other currency or currencies).

Cross-Default and Cross-Acceleration. (a) Any Financial Indebtedness of the Borrower or any of its Subsidiaries is not paid when due and such non-payment is not cured within the earlier of seven (7) days or any shorter period after which such non-payment would constitute an event of default (however described) under or with respect to any other Financial Indebtedness of the Borrower or any of its Subsidiaries. (b) Any Financial Indebtedness of the Borrower or any of its Subsidiaries is declared to be or otherwise becomes due and payable prior to its specified maturity as a result of an event of default (however described). (c) Any commitment for any Financial Indebtedness of the Borrower or any of its Subsidiaries is cancelled or suspended by a creditor of the Borrower or any of its Subsidiaries as a result of an event of default (however described) and such event of default is not cured within the earlier of seven (7) days or any shorter period after which such event of default would constitute an event of default (however described) under or with respect to any other Financial Indebtedness of the Borrower or any of its Subsidiaries. (d) Any creditor of the Borrower or any of its Subsidiaries becomes entitled to declare any Financial Indebtedness of the Borrower or any of its Subsidiaries due and payable prior to its specified maturity as a result of an event of default (however described) and such event of default is not cured within the earlier of seven (7) days or any shorter period after which such event of default would constitute an event of default (however described) under or with respect to any other Financial Indebtedness of the Borrower or any of its Subsidiaries.