Borrower Affiliate Language & Cross Default

• Borrower Affiliate Language - GoDocs currently has Borrower and Borrower Affiliate language in Section F.1(j) of the GoDocs Loan Agreement for cross-default requirements. Here is an example below from a recent Astera package. 
  • F.1.  Events of Default. The occurrence of any one or more of the following shall constitute an Event of Default under this Loan Agreement:
    • (j)   any event or condition occurs that results in any other indebtedness (i.e. indebtedness other than the Indebtedness secured by the Mortgage) owing by Borrower or any Borrower Affiliate (as defined below) to Lender becoming due prior to its scheduled maturity or that enables or permits (after the lapse of any applicable cure period) Lender or any trustee or agent on its behalf to cause such indebtedness to become due prior to its scheduled maturity ("Borrower Affiliate" means (i) any entity owned or controlled by Borrower, (ii) any entity commonly owned or controlled by the members or owners of Borrower, (iii) any Guarantor and (iv) any entity owned or controlled by one or more Guarantors);
• Specific Cross-Default / Cross-Collateralization Provisions - Having said that, GoDocs’ loan documentation platform offers an automated UI feature with many options to properly document cross-default and cross-collateralization provisions. More specifically, GoDocs' cross-default and cross-collateralization UI feature allows lenders to tailor either or both provisions for their specific needs and subject transactions and, thus, offers greater lender protections for enforcement over generic provisions.  
  
• General Cross-Default / Cross-Collateralization Provisions - We will soon launch the option to include this general provision below for customers. See below for the language that the GoDocs Development/Product team is building into our templates as an option in tandem with the Specific Cross-Default Provision above. 
  • H.16. Cross-Default and Cross-Collateralization.
    • (a)   Borrower acknowledges and agrees that a default under the terms and conditions of any other loans, obligations, liabilities or indebtedness of Borrower, whether now existing or hereafter arising, with Lender or any other lender, including the other indebtedness described in section F.1(i) above, shall be deemed to be a default under the terms and conditions of the Note and this Loan Agreement, and the property or properties collateralizing the other loans, obligations, liabilities or indebtedness of Borrower shall act as collateral for the Loan, for as long as any one holder of the Note holds both the Note and the notes or other security instruments evidencing those other loans, obligations or indebtedness with Borrower
    • (b)    Any other loans, obligations, liabilities or indebtedness of Borrower to Lender, whether now existing or hereafter arising, shall, at Lender’s sole option, be cross-collateralized with the Loan, and to the extent such cross-collateralization requires amendments or modifications to the Loan Documents, Borrower agrees to cooperate in good faith with Lender to accomplish such amendments and/or modifications.