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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.

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.

The Mortgage Encyclopedia. Copyright © 2004 by Jack Guttentag. Used with permission of The McGraw-Hill Companies, Inc.
References in periodicals archive ?
While Xavier University's dynamic response to Hurricane Katrina is perhaps its best-known accomplishment in the eyes of federal officials, the university's aggressive approach in combating student loan defaults is another high-profile area of success.
Despite the growing list of anecdotal horror stories which are heard from the Buy Side about sharply discounted secondary market valuations for CSFTs--structures, mind you, which often carry investment-grade ratings from the major credit rating agencies--the data for loan defaults and related losses at banks remain well below historical norms.
In order to secure a credit line of 10 trillion yen, for instance, a guarantee fund would have to be around 100 billion yen, assuming a loan default ratio of 1%, Yosano said.
Several of the loan default studies have produced results that are consistent with those of Astin, Hearn, Mortenson, Olivas, and St.
"Fewer retail defaults will likely push the loan default rate down to 2% at year end, below Fitch's forecasted 2.5%.
Summary: Owner of Atlas Jewellery was in prison since 2015 in multiple loan default case worth Dh550m
Heartland received the judgment before the case went to trial because the loan default was "undisputed," according to Wilson's order.
The accused include Azeem Ahmed, son of Naseem Ahmed, Reena Azeem, wife of Azeem Ahmed, Isra Amir, wife of Amir Naseem, Adia Naseem, daughter of Naseem Ahmed and Sadaf Nadeem, wife of Nadeem Yunus, which are the Directors of M/s Al-Abid Silk Mills Ltd and were found involved in the willful loan default case of amount Rs.347-267 million.
Colleges and universities are under the gun to reduce loan default rates, not only because they indicate to prospective students whether or not the college has sound financial aid policies and student support services, but because the federal government can block loans from being offered at schools with very high default rates.
Current student loan trends, however, may signify a much deeper subtext of loan default. Failure to repay student loans may in part be explained by insufficient financial literacy.
Using the two-year metric, for example, the official loan default rate for students of for-profit colleges who entered repayment in 2008 was 11.6 percent.