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Cross Collateral Agreements are essential instruments in secured lending transactions under Indian law, particularly utilized when multiple credit facilities need to be secured by various assets. This document type is commonly employed when a borrower has multiple loans from one or more lenders and wants to use their assets as collective security. The agreement details the cross-collateralization structure, enforcement mechanisms, and rights of parties, ensuring compliance with Indian security and banking laws. It becomes particularly relevant in complex financing arrangements where traditional single-asset security structures are insufficient. The Cross Collateral Agreement must carefully navigate various Indian legislations including the SARFAESI Act, Transfer of Property Act, and Registration Act, while incorporating necessary safeguards for all parties involved.

1. Parties: Identification of all parties to the agreement including the borrower, lender(s), and any guarantors

2. Background: Recitals explaining the context of existing loans, security interests, and purpose of cross-collateralization

3. Definitions: Comprehensive definitions of terms used throughout the agreement, including specific financial and security-related terminology

4. Creation of Cross Collateral: Primary operative clause establishing the cross-collateralization structure and linking all security interests

5. Secured Obligations: Detailed description of all obligations secured by the cross-collateral arrangement

6. Security Interest Provisions: Specific provisions regarding the nature, scope, and extent of security interests

7. Representations and Warranties: Standard and specific representations regarding ownership of collateral, authority to enter agreement, and absence of encumbrances

8. Covenants: Ongoing obligations regarding maintenance of collateral, insurance, and compliance with laws

9. Events of Default: Comprehensive list of events triggering enforcement rights

10. Enforcement Rights: Rights and remedies available upon default, including SARFAESI Act provisions

11. Priority and Subordination: Provisions regarding ranking of security interests and relationship with other creditors

12. Costs and Expenses: Allocation of costs related to preparation, registration, and enforcement

13. Notices: Communication procedures between parties

14. Governing Law and Jurisdiction: Choice of law and jurisdiction provisions

15. Execution: Execution blocks and attestation requirements