(1) Cross-default. The formation of credit risk is a gradual process from germination, accumulation to occurrence. Before the repayment period expires, the borrower's financial and commercial conditions have undergone major adverse changes, which may affect its performance ability. In addition to the general default clause and guarantee, the lender can also stipulate "cross-default clause" in the contract. The basic meaning of cross-default is that if the debtor under this contract defaults under other loan contracts, it is also regarded as a breach of this contract. Generally speaking, creditors hold the debtor liable for breach of contract on the grounds that the parties fail to perform their obligations under this contract, but the cross-default clause breaks through this restriction and smacks of "fighting first and then suffering", that is, trying to take relief measures before the repayment crisis of the borrower's debts under other loan contracts, so as to avoid falling into a worse situation than other creditors. Although this form of breach of contract is not clearly stipulated in the current law of our country, it does not violate the relevant jurisprudence and legal spirit of the contract law, and the right of uneasy defense in the current contract law can be used as the legal basis for its application. Therefore, the cross-default clause can be written into the contract as an agreed clause, so that the lender can fully grasp the borrower's credit level in time.

(2) The borrower is insolvent. If the borrower is declared bankrupt or insolvent through judicial procedures, or obviously unable to pay off due debts, or gives property to creditors or puts forward suggestions for giving property, it shall be regarded as an event of default. This is a worrying breach of contract, because when the borrower loses its solvency, if it can't get out of the predicament, it will inevitably violate the loan contract.

(3) Other major adverse changes have taken place in the borrower's situation. Since the default clause is used to deal with unforeseen circumstances, it cannot be exhausted from the lender's point of view. Therefore, from the lender's point of view, such a comprehensive protection clause is needed to protect its interests. In the terms of breach of contract, it is generally stipulated that no matter what the reason, whether the borrower is voluntary or involuntary, whether it is caused by the order of the court or the provisions of laws and regulations, it should be regarded as breach of contract. The purpose of this provision is to prevent the borrower from claiming that the breach of contract is caused by force majeure, thus exempting him from the liability for breach of contract.