Cross Default

Let’s say you have more than one loan with a bank. Your loan agreement most likely states that, if you do not make your loan payments on one loan, the bank can deny you access to your balances in other loans. They may also help themselves to any money you have lying around in your checking, savings, or other accounts.

This form of one loan hinging on the other lives under the domain of "cross collateralization," and is common when multiple deals are running simultaneously with the bank, in hopes to mitigate risk (and offer lower interest rates), but having all of the eggs shared among many baskets.