Posted on September 15, 2021
Another way for the borrower to minimize the risk of default would be to determine, to the extent possible, the additional delays in the agreement, which could prevent the borrower from being late in fulfilling payment obligations. Finally, the provisions on cross-default conditions contained in the agreement should be clear and far removed from subjectivity in order to avoid disputes arising from this issue. As mentioned briefly, cross-default clauses are very favorable to the debtors of the agreements, as they are sufficient to minimize the risk of default in the agreement, but these clauses can have a negative impact on borrowers. .