cross guarantee

cross guarantee
cross guarantee cross guarantee guarantee2

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cross guarantee UK US noun [C]
FINANCE a promise made by a number of companies in a group that a loan to one of the companies will be paid back, if that company cannot pay back the loan itself: »

Although some of the company's debt has a cross guarantee from its partner, both companies are probably worth less than the debt they support.

»

a cross-guarantee agreement

cross-guaranteed adjective
»

The company is a wholly owned, cross-guaranteed subsidiary of Benson UK plc.


Financial and business terms. 2012.

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