The contractual agreement that if the credit rating deteriorates, the creditor – usually the bank – is entitled to terminate the contract with the debtor or assign it to a third party (hedge fund, collection agency). – See covenant, loan, revoked, default, third-party due clause, third-party default clause, first-lien default clause, forfeiture clause, prepayment clause, mutual.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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