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Related to Default: Default gateway


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.


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.


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.


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.


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.


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 classic literature ?
They must die -- die all together -- killed at one stroke by the thunder of men in default of God's.
We, therefore, order and strictly enjoin, by these presents, all of the inhabitants, as well of the above-named district as of all the other Districts, both old men and young men, as well as all the lads of ten years of age, to attend at the Church at Grand Pre, on Friday, the fifth instant, at three of the clock in the afternoon, that we may impart to them what we are ordered to communicate to them; declaring that no excuse will be admitted on any pretence whatever, on pain of forfeiting goods and chattels, in default of real estate.
The officers may write to the papers demanding the heads of the Horse Guards in default of cleaner redress for grievances; the men may break loose across a country town and seriously startle the publicans; but neither officers nor men have it in their composition to mutiny after the continental manner.
On his arrival, as an indemnity for alleged insults offered to the flag of his country, he demanded some twenty or thirty thousand dollars to be placed in his hands forthwith, and in default of payment, threatened to land and take possession of the place.
what pretty words are words that promise, and how well they fill the mouth in default of other things
Possessing, however, in default of a competent knowledge of the principles of etiquette, a very downright sense of the "meanness" of certain actions, it seemed to him to belong to his position to keep on his guard; he was not going to put it into the power of these people to say that in their house he had done anything unpleasant.
There is no instance of any default on the Governor's personal and unauthorized loans, for which they called him the Father of Waterwheels.
But, in default of that, it behoved her to do something; to be their Providence; for to Tess, as to not a few millions of others, there was ghastly satire in the poet's lines
I made a proposal to Peepy, in default of being able to do anything better for him, that he should let me wash him and afterwards lay him down on my bed again.
Besides the cell on the Grève, there was one at Montfauçon, one at the Charnier des Innocents, another I hardly know where,--at the Clichon House, I think; others still at many spots where traces of them are found in traditions, in default of memorials.
In default of the actually destitute and starving, whom she would much have preferred, Mrs.
Round them gathered a group of ladies with pieces of needlework, or in default of needlework, with novels, to superintend the game, much as if they were in charge of two small boys playing marbles.