Default

(redirected from defaults)
Also found in: Dictionary, Thesaurus, Legal, Acronyms, Idioms, Encyclopedia.

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 ?
Using another view, we can disaggregate the one-year expected cumulative default rate by sector.
Question the purpose of defaults: Once you have identified a default, ask yourself about its purpose and who it was created by.
The default regulations also form part of reform programme to deliver better customer outcomes across the financial sector.
Three of the five major cities had overall default rates increase during April, led by Miami, with a six basis point increase, followed by New York, up two basis points; and Dallas, with a one basis point increase.
"Our report shows that the 10-year cumulative default rate for project finance bank loans is consistent with 10-year cumulative default rates for corporate issuers of low investment- grade credit quality," said Andrew Davison, a Moody's Senior Vice President and author of the report.
Moral hazard has helped student debt balloon to $1.3 trillion - colleges and universities end up with the money, while students bear the burden of repayment and the federal government carries the risk of default. If colleges bore at least a small part of the risk, it's likely that many students' debt would become more manageable and the default rate would go down.
By region, Moody's expects the default rate to rise to 2.7% in the
Now, if you want to clear the default app like for example, you no longer want to use Nova Launcher and go back to Google Now Launcher instead.
When examining populations at risk of default, completion was the only common thread.
Nine percent is a rather meaningful number by social science standards, although it likely does not represent a difference of sufficient power to warrant different defaults on a question like organ donation.
The importance of effort, in helping defaults to stick, is demonstrated by evidence that when people are tired--for example, because they have made a large number of choices--they are more likely to stay with the default.
A senior official at the FSC pointed out that Taiwan's current required default provision rate of 0.5% is much lower than the 1% in many neighboring countries, hence making Taiwan's banks less able to cope with defaults.