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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 ?
3, and it shows people who know defaulters have greater pessimism about the overall economy and home prices.
SNGPL has compiled a list of all defaulters and sent it to the Election Commission of Pakistan (ECP) today.
ISLAMABAD -- Election Commission of Pakistan on Wednesday received the list of defaulters of Sui Northern Gas Company (SNGC).
The ETO said that the properties of the defaulters would be sealed and they could also be sent behind the bars.
Multan Electric Supply Company (Mepco) has 324 defaulters with Rs170.13 million in dues, while Gujranwala Electric Supply Company (Gepco) has 30 defaulters with Rs166.2 million in dues.
million from 9,493 defaulters in Rahimyar Khan circle and Rs 113.5 millions have been recovered from 9,898 defaulters in
Task Forces of Lakki Division recovered Rs 0.76 million from defaulters and removed 58 direct hooks.
Meanwhile, a spokesman of the power division said Power Division has decided to take strict action against electricity defaulters across the country and the electricity distribution companies are actively engaged in this regard.
According to MEPCO spokesperson Jamshaid Niazi, an operation is continuing on a fast pace against chronic defaulters. He said that sub-divisional, divisional and circle teams were conducting raids against defaulters and had recovered over Rs 267.7 million from 24,125 defaulters in Multan circle, Rs 136.6 million from 10,227 pilferers in DG Khan, Rs 66.8 million from 4,844 defaulters in Vehari, Rs 187.3 million from 17,355 chronic defaulters in Bahawalpur, Rs 77.3 million from 5,969 in Sahiwal, Rs 141.6 million from 11,147 defaulters in Rahim Yar Khan, Rs 162.8 million from 11,598 defaulters in Muzaffargarh circle, Rs 54 million from 4,487 defaulters in Bahawalnagar and Rs 97.6 million were recovered from 6,998 power pilferers in Khanewal circle from July-2018 to April-2019.
The power division has started compiling a list of main defaulters that could be completed in a fortnight period, said sources in the ministry.
According to spokesperson, in line with special directions of MEPCO CEO Engineer Tahir Mehmood, the company teams started crackdown against defaulters.
According to MEPCO spokesperson, the operation circles team had launched crackdown on chronic defaulters.