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 ?
Another aspect of loan defaults is that the amount of defaults has increased rapidly in the recent past.
He contended that only banking courts were empowered to hear loan default cases.
Not surprisingly, 2007 CMBS deals led all vintages, with nearly 50% of all new loan defaults coming from 2007 deals.
The webinar is led by two experts on loan defaults with lenders and mortgages, Martin Luskin & Sam Walker, and focuses on:
Fitch believes that the increased risk of loan defaults merits some change in subordination levels, especially for the mezzanine bonds of the capital structure.
CMBS will show some resiliency and remain low in the face of projected higher loan defaults, according to Fitch Ratings.
CMBS Loan Default Study 1993-2006' is available on the Fitch Ratings web site at www.
Fitch expects the CMBS bond and loan default rates to decline even further in 2007, according to Senior Director Patty Bach.
The Statement of Objects and Reasons of the bill says the FIRO was promulgated in 2001, primarily to deal with the recovery process of the bank loans and loan defaults.
Loan defaults have peaked in Cape Verde's banking sector.
Governor of Central Bank Sultan bin Nasser Al Suwaidi, speaking to the bankers and top officials at a seminar encouraged them to implement the directives of the President, His Highness Shaikh Khalifa bin Zayed Al Nahyan, through finding appropriate solutions to address the issue of loan defaults.
Loan officers for banks and financial institutions are focusing more attention than ever on environmental liability, which is risk associated with commercial real estate collateral if a loan defaults and environmental problems arise.