Definition of “cross guarantee” - English Dictionary

“cross guarantee” in Business English

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cross guaranteenoun [ C ]

uk us

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.

(Definition of “cross guarantee” from the Cambridge Business English Dictionary © Cambridge University Press)