A Cross-Default Means That a Default Under One Loan Document

question 8

True/False

A cross-default means that a default under one loan document such as a mortgage would constitute a default under another loan document such as an assignment of rents.

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Definitions:

Recorded

The action of documenting financial transactions in accounting records to keep an accurate and organized track of a company's financial activities and position.

Cash Received

The total amount of money, including cash, checks, and electronic transfers, that is received by a business during a specified period.

Accounting

The information system that identifies, records, and communicates the economic events of an organization to interested users.