Cross acceleration - ISDA Provision
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Cross acceleration is like cross default, but it only arises when the non-defaulting party has actually accelerated the contract. Therefore it is a higher threshold and a less sensitive trigger, and avoids that weird scenario when the actual creditor has not itself triggered its default rights, but an opportunistic third party holder of a cross default right can jump in and close out anyway (therefore making the benign creditor less likely itself to show leniency for the original default, it being a nasty, brutish and short old world out there).
You can amend Cross Default under the ISDA Master Agreement to Cross Acceleration as follows:
- Section 5(a)(vi) is amended by deleting “, or becoming capable at such time of being declared,” from subsection (1).