A provision which joins two or more properties collateralizing two or more separate notes that allows cash flows from all properties to be available for any debt payments, property improvements, maintenance, etc. of all properties. CMBS backed by cross-collateralized properties reduces delinquency risk and adds value to the deal. A form of credit enhancement.
A grouping of mortgages or properties that serves to jointly secure one debt obligation
Cross-Collateralization is a situation, wherein the collateral of one loan serves as a collateral for another loan/s.
Cross-Collateralization is a term used when the collateral for one loan is also used as collateral in a different loan. One example would be if a person owns a house but wants to buy a second house, that person can use the equity in their existing house as collateral for a loan on the new one.
