Event Of Default Financial Glossary

What is it? 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 debtors failure to make required interest and/or principal payments to the bank when they are due. Often, the remedy permitted to the bank when an event of default occurs is the right to declare the debt to be due and payable in its entirety. Formal loan agreements frequently include numerous events of default.

Finance Term Definition Added By: Kaitlyn

The Event Of Default definition has been viewed 5165 Time(s)!

Send To Friends!

If you'd like to send the Event Of Default definition to yourself or to your friends/colleagues, just enter the e-mail addresses in the boxes below -

We hope you now understand the meaning of Event Of Default. If you need any more information on this term, please don't hesitate to contact us.

Other Similar Finance Terms:

Financial Term ROTC Scholarship Program is Competitive scholarship that pays for tuition, fees, books and a monthly living stipend and other benefits in exchange for participating in drills and classes during the academic year, military camp during the summer, and, upon graduation, full-time active duty in the military for at least four years.

Financial Term E F P is EFP is an acronym for Exchange for Physicals. The EFP price is the margin spread at which the owner of a futures position can exchange futures contracts for physical securities. eg. an investor could exchange 3Yr bond futures for 4Yr bonds at 20 bps.

Financial Term Federal Home Loan Mortgage Corporation (FHLMC) is An organization that purchases conventional mortgage loans and sells securities based on pools of these loans. Also called Freddie Mac.

Financial Term Asset Management Account is An account at a brokerage or bank that includes the services of both. Asset management accounts generally offer check-writing privileges, credit or debit cards, and automatic transfers from one account to another. They often require an annual fee.

Financial Term Share Certificate is The document that records the shareholders stake in the company. An indication of ownership to be returned on the sale of the holding.