event of default

event of default
Certain specified events specified in loan and other documentation which might jeopardise a lender's or investor's position. If they occur the lender or investor is allowed to withdraw and claim earlier repayment of indebtedness.

Easyform Glossary of Law Terms. — UK law terms.


event of default
An event specified in a commercial agreement where a non-defaulting party can terminate the agreement. Events of default are common in loan agreements or debt instruments, the happening of which entitles the lender to cancel the facility and/or declare all amounts owing by the borrower to be immediately due and payable. Typically events of default include non-payment or late payments of amount due, breach of certain material representations or personal covenants, cross-default, breach of change of control provisions, material adverse change default and insolvency. However the list is often extensive.
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USA
An event specified in a commercial agreement that gives the non-defaulting party the right, among other things, to terminate the agreement. Events of default are common in loan agreements or debt instruments, the happening of which entitles the lender to cancel the facility and/or declare all amounts owing by the borrower to be immediately due and payable. Typical events of default in loan agreements include non-payment or late payment of amounts due, breach of certain material representations or covenants, cross-default, breach of change of control provisions and insolvency.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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Look at other dictionaries:

  • Event of default — is a term used in commercial loan documentation. It refers to the occurrence of an event which allows the lender to demand repayment of the loan in advance of its normal due date (also known as accelerating the loan). In a revolving credit… …   Wikipedia

  • Event Of Default — An action or circumstance that causes a lender to demand full repayment of an outstanding balance sooner than it was originally due. In many agreements, the lender will include a contract provision covering events of default to protect itself in… …   Investment dictionary

  • event of default — An event described in a promissory note, security agreement, or loan agreement that triggers rights of the lender to take remedies set forth in the documents. The most common event of default is the debtor s failure to make required interest… …   Financial and business terms

  • event of default — A critical clause in a loan agreement, the breaching of which will make the loan repayable immediately. The breaching of any covenant clause will be an event of default. Events of default also include failure to pay, failure to perform other… …   Accounting dictionary

  • event of default — In a loan agreement, a specified occurrence that will make the loan repayable immediately. The breaching of any covenant clause will be an event of default. Events of default also include failure to pay, failure to perform other duties and… …   Big dictionary of business and management

  • default — de·fault /di fȯlt, dē ˌfȯlt/ n [Anglo French defalte defaute lack, fault, failure to answer a summons, from defaillir to be lacking, fail, from de , intensive prefix + faillir to fail] 1: failure to do something required by duty (as under a… …   Law dictionary

  • default — to fail to meet an obligation when due, such as paying a debt. Glossary of Business Terms Failure to meet a margin call or to make or take delivery. The failure to perform on a futures contract as required by exchange rules. The CENTER ONLINE… …   Financial and business terms

  • Default — Failure to make timely payment of interest or principal on a debt security or to otherwise comply with the provisions of a bond indenture. The New York Times Financial Glossary * * * ▪ I. default de‧fault 1 [dɪˈfɒlt ǁ ˈfɒːlt] noun 1. by default… …   Financial and business terms

  • default — de|fault1 [dıˈfo:lt US ˈfo:lt] n [Date: 1200 1300; : Old French; Origin: defaute, from Vulgar Latin defallere to be lacking, fail ] 1.) by default a) if you win a game, competition etc by default, you win it because your opponent did not play or… …   Dictionary of contemporary English

  • Event loop — In computer science, the event loop, message dispatcher, message loop, message pump, or run loop is a programming construct that waits for and dispatches events or messages in a program. It works by polling some internal or external event… …   Wikipedia

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