Also known as a cross-group guarantee. A guarantee from each member in a group of companies of the obligation(s) of each other member of the group. It is designed to protect the person taking the guarantee from a situation where assets are moved out of the company that has incurred the liability (usually a loan) and are transferred to group companies, putting them beyond the reach of the lender if the borrower defaults. If the lender has a cross guarantee, it will be able to recover the money from whichever company in the group has the most assets (and the least debt).