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Do coporations normally set up their bonds like this?

I

ICRS

Banned
Most local and state governments word their indenture, so that if they ever default on 1 bond, then every outstanding bond is also in default.

If they had 1,000,000 bonds with 5 billion due in total. Being short 1 dollar for 1 the bond shall place all 1,000,000 bonds in default.

Is this more of a municipal bond thing, or do corporations do this as well. Seems very risky to me too.

 
Furniture "rent to own" places used to do this. If you defaulted on one item, everything you had outstanding was in default, and they also got to take it back free and clear of any payments you've already made to it.

I don't think I'm contributing anything, but it was a pretty interesting case in first year contracts 🙂
 
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