Legal Protection for Creditor under Cross Default and Cross Collateral Clause in a Credit Agreement

The business developments initiated by businessmen often require large amounts of financing, hence a third party interference is needed. For this purpose, generally apply for loans or credits from financial institutions, including banks. legal relationship between businessman as debtor and bank creditor stated in credit agreement. An issue arises when there only one with more than upon single In such condition, cross default collateral clauses are known. This research will discuss whether the can provide protection its agreement debtors. conclusion, not factors that guarantee value made must also be adjusted to total debt all related