MSFTA Cross Default Clause Samples
The MSFTA Cross Default clause establishes that a default under one agreement or financial contract can trigger a default under the Master Securities Forward Transaction Agreement (MSFTA) as well. In practice, this means that if a party fails to meet its obligations under a separate, specified agreement—such as a loan or another derivatives contract—that failure can be treated as a default under the MSFTA, even if the MSFTA itself has not been breached. This clause is designed to protect parties by allowing them to respond swiftly to credit deterioration or financial distress, thereby managing counterparty risk across multiple related agreements.
MSFTA Cross Default. An “event of default” (as such term is defined in the applicable MSFTA) (in each case, subject to any applicable cure period) occurs under any MSFTA (as defined herein);