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Now a borrower that is not due to pay anything, can hardly [[Failure to pay|fail to pay]]. Can it? | Now a borrower that is not due to pay anything, can hardly [[Failure to pay|fail to pay]]. Can it? | ||
This presented | This presented our lender with a risk: if, in the meantime, the borrower failed to pay under a loan from ''another'' lender, ''our'' lender would be in a difficult spot: it has good reason to think the borrower is in trouble, but the borrower hasn’t missed any payments — how could it? ''None were due''. Waiting for the next payment to see if the borrower will meet it, won’t do. Our borrower wants to accelerate its loan ''now'' — ideally, before the other lender accelerates its loan: Our lender wants to get in while the going is still tolerably good. | ||
Whence came the notion of a [[cross default]]: | Whence came the notion of a [[cross default]]: |