Explain the cross-collateralization feature and its significance in a single-borrower / multiproperty CMBS transaction

What will be an ideal response?

In a single-borrower/multi-property deal there is one borrower and multiple properties. Three key structural features in such deals are the cross collateralization feature, cross-default feature, and property release provisions. The cross-collateralization feature is a mechanism whereby the properties that collateralize the individual loans in the mortgage pool are pledged against each loan. Inclusion of this feature (along with the cross-default feature) assures that the principal and interest payments of all the properties are available to meet the obligations of all the loans.