cross guaranteenoun [ C ]
ukusFINANCE 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.