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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.


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


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.


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.


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.


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 ?
How do secured transactions enhance the position of creditors against debtors?
In sum, it is a widely-accepted premise, inspiring international harmonization instruments and triggering domestic reform of rules on security rights, (11) that a sound, effective, transparent, and modern secured transactions law would facilitate access to credit, mitigate risk exposure, improve financing conditions, (12) and reduce transactions costs.
Inter-American Model on Secured Transactions adopted by the OAS, which
So, what does the term "secured transactions" mean and how do modern secured transactions frameworks contribute to private sector development?
Revised Article 9 was adopted by the Florida Legislature in 2001 and comprehensively revised the law of secured transactions in Florida.
The revised text includes seven main sections: the legal environment, including dispute resolution, constitutional law, intentional torts and business torts, negligence, liability and ethics, contracts, covering agreements, consideration, legality, consent, third parties and discharge, commercial transactions, including ownership and risk, warranties and product liability, remedies, secured transactions and bankruptcy, agency and employment law, business organizations, government regulation, including antitrust, consumer law and environmental law, and property, including intellectual property, real property, personal property, estate planning and insurance.
At the top end of the spectrum, the 'platinum' version costs FFr 2000 ($320) to set up and FFr 1,600 ($255) to run monthly, giving a company 50 web pages with space to fit 500 products and secured transactions.
ISLAMABAD -- The Securities and Exchange Commission of Pakistan has appointed Registrar, Secured Transactions Registry.
ISLAMABAD -- In the wake of the federal government's notification to establish the Secured Transactions Registry, the Securities and Exchange Commission of Pakistan (SECP) has appointed a registrar for the said registry.
This plain-language guide is designed to help students understand the concepts and law of secured transactions as found in Article 9 of the Uniform Commercial Code.
(1) The aim would be to coordinate the implementation of the UNCITRAL Model Law on Secured Transactions (Model Law) (2) with the requirements enshrined in the Basel Accords issued by the Basel Committee on Banking Supervision (BCBS).