Default


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Default

The failure to make timely payment of interest or principal on a debt security or to otherwise comply with the provisions of a bond indenture. A breach of a covenant. In context of project financing, a technical default signals a project parameter is outside defined or agreed limits or a legal matter is not yet resolved.

Default

The failure to make payments on a debt. One may default on any debt, such as a mortgage or a bond. Default is a very serious matter and may entitle the lender or bondholder to take possession of one's assets in order to recover the amount lost in principal and interest payments on the debt. Default also has a negative impact on one's creditworthiness in the future.

default

The failure to live up to the terms of a contract. Generally, default is used to indicate the inability of a borrower to pay the interest or principal on a debt when it is due. See also technical default.

Default.

If a person or institution responsible for repaying a loan or making an interest payment fails to meet that obligation on time, that person or institution is in default.

If you are in default, you may lose any property that you put up as collateral to get the loan. For example, if you fail to repay your car loan, your lender may repossess the car.

Defaulting has a negative impact on your credit history and your credit score, which generally makes it difficult to borrow again in the future. In fact, failure to pay on time is the single most important contributor to a poor credit history.

A bond issuer who defaults may not pay interest when it comes due or repay the principal at maturity, or both.

default

The failure to meet one's obligations in a timely manner. There are several important concepts relating to defaults in the real estate field:

• Leases and mortgages often differentiate between monetary defaults, such as failure to pay money when due, and nonmonetary defaults such as a failure to provide proof of insurance or copies of monthly financial statements. If so, there will be different notice provisions and grace periods for each.

• Unless a sale contract contains language that “time is of the essence,” or one party has made the other aware that time is critical, then a court will ordinarily award a purchaser a reasonable amount of time to complete closing, even if it is past the contract date.

• Some states have statutes allowing collection of attorneys' fees when there has been a default in the contract. Other states require specific language in the contract allowing for collection of attorneys' fees.

Default

Failure of the borrower to honor the terms of the loan agreement.

Lenders usually view borrowers delinquent 90 days or more as in default.

See Payment Problems.

References in periodicals archive ?
Only one company defaulted in May, lifting the year-to-date default count slightly up to 23.
Measured on a dollar volume basis, the European speculative-grade bond default rate rose to 8.
On primary mortgages, homeowners were a median five months behind on their payments when the lender started the default process.
The majority, however, focusing on what it perceived to be the intent of the parties, rather than the four corners of the guaranty, wrote that it was "disingenuous" for Madison to argue that the Millers should have "expected their obligations under the guaranty to be extended by a mere technical violation rather than by a material default.
So a name, race, vague location, and a broad age range is sufficient to launch a process that could quickly lead to a default judgment, asset liens, and a blocked passport?
In 2002, the risk of additional defaults in Argentina will remain high as the economic turmoil runs its course," said Brady.
No state GO defaults were found in the database; in fact, no state has defaulted on its GO bonds since the Great Depression of the 1930s, and then there was only one default by Arkansas.
Beyond refinancing, improving fundamentals have helped the survivors of the 2008-2009 economic and financial crisis avoid default in 2010.
Retail is expected to underperform versus all other corporate sectors and could account for $7 billion of loan default volume next year, leading to a sector default rate of 10%.
Measured on a dollar volume basis, the global speculative-grade bond default rate ended 2009 at 15.
With traditional bonds, the surety is entitled to, and routinely does, investigate the alleged default of its principal (the subcontractor) before taking any action to resolve the situation.
For the year's first nine months, 37,875 property owners across the state received a default notice, down from 51,182 a year ago.