Loans Quizzes-A clause in a loan agreement that

Answer to Quiz

A clause in a loan agreement that allows a lender to declare the loan due immediately if the borrower defaults on other debt is referred to as:

Answer: (b), cross default clause
A "cross default" refers to a clause in a loan or credit agreement that allows the lender to declare the loan immediately due and payable or to increase fees if the borrower defaults on any other debt.

Word of the Day

Deep in the Money

The term "deep in the money" often refers to a (1) call option whose exercise price is...

Deep in the Money

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