Default

(redirected from Loan Defaults)
Also found in: Dictionary, Thesaurus, Legal, Encyclopedia.
Related to Loan Defaults: defaulting

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 ?
The 13.4% TTM loan default rate resulted primarily due to bankruptcies from Ocean Rig UDW Inc.
To date, no permanent loan defaults have been reported in the pledged program, although there have been a few delinquencies.
Retirement Loan Eraser is an automated loan insurance program that prevents 401(k) loan defaults, protecting plan assets and immediately improving retirement outcomes.
The IFRS Standards which came into effect on January 1 2018, require banks to set aside funds in advance to mitigate loan defaults.
The speech highlighted Hourican's frustration with the "high level of loan default" and our society's general indifference to the problem which has prevented the effective reduction of NPLs.
A MID public sector banks ( PSBs) coming under the glare following the Vijay Mallya episode and other instances of loan default, the Supreme Court ( SC) said on Tuesday that the total outstanding amount should be made public without disclosing defaulters' names.
The proposed amendments are meant to facilitate recovery process of bank loans so that loan defaults and incidence of written off loans could be minimized.
Correction (published June 13, 2015): A June 12 editorial overstated the student loan default rates at the University of Oregon and Oregon State University.
Summit Bank and BOZ now have until May 16 to stake their claims to any Smiley assets securing his serial loan defaults that involve 18 other Arkansas lenders.
All cases of loan defaults referred under section 31C of the NAB Ordinance will be reported to the election commission in detail whether they are at the inquiry, investigation or trial stage or completed through plea bargain and voluntary return programmes.
The committee also noted the follow up by Shaikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs, which contributed to the acceleration of procedures to settle a large number of applications to settle loan defaults.
The rise in student loan defaults signifies a rise in institutional cohort default rates (CDRs)--a measure of accountability that informs the government and the general public how well an institution prepares its students for loan repayment.