- 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
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▪ I. default de‧fault 1 [dɪˈfɒlt ǁ -ˈfɒːlt] noun1. by default if something happens or is decided by default, it happens or is decided in that way because you did not do anything to change it:• They won the last election by default.
2. FINANCE [countable, uncountable] when someone fails to pay money that they owe at the right time:• An asset can be repossessed by a lessor in the event of a default on the lease payments.
• The banks have decided that the company is in default on its loan agreements.
• The contract includes provisions for loss and expense suffered by the contractors due to default by the employer.
4. [uncountable] LAW when someone fails to come to court or make a written statement when they are supposed to:• The defendant will have to explain his default and satisfy the court that he has a defence which ought to be heard.
5. [countable, uncountable] COMPUTING the way in which things will be arranged on a computer screen or done by a computer unless you change them:• If the defaults are acceptable the user can just press Return.
• This icon appears by default.
• The default margin settings are 1.25 each for a page 8.5 wide.
[m0] ▪ II. default default 2 verb [intransitive]• The Act covered what mortgage lenders could do to recover their money if borrowers defaulted.
default on• He defaulted on his child support payments.
2. LAW to not do something that it is your duty to do:• If a party defaults in its obligations to the project, then the party's right to continue participating in the project shall be terminated.
3. COMPUTING if a computer program defaults to a particular thing, it does that thing unless you instruct it to do something else:default to• Microsoft Word will default to starting each new line with a capital letter unless you customize the settings.
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Failure to meet an obligation such as a payment of interest or principal. Technically, the borrower does not default. The initiative comes from the lender who declares the borrower is in default.* * *
Ⅰ.default UK US /dɪˈfɔːlt/ noun [C or U]► FINANCE the fact of not paying interest or other money that is owed on time: »Many experts say a default would raise interest rates in the future because the government would be seen as a higher-risk borrower.
»Any default on the interest payments will have serious consequences.
»Creditors are frequently obliged to terminate the consumer credit agreement because the debtor is in default.
► LAW the fact of not keeping to an agreement or contract: »There will be a joint government review of the agreement if there is any default.
► IT the way that something will happen or appear automatically, especially on a computer, if you do not make any different choices: »Checking this box means that your computer will now use this printer as the default.
»The default is to provide a statement monthly.
»This is the default setting, but you can change it by going to the Options menu.
»We recommend using the defaults that are already set.
Ⅱ.default UK US /dɪˈfɔːlt/ verb [I]► FINANCE to fail to pay interest or other money that is owed: default on a payment/a mortgage/your rent »If a company defaults on its rent, another tenant can be found.
»I have never defaulted or been late with previous payments.
► LAW to fail to keep to an agreement or contract: default on an agreement/a contract »They claimed that education providers had defaulted on their agreement with students to provide a course.
► IT to happen or appear automatically in a particular way, if a user does not make a different choice: »If you do not enter a value it will default to a delay of 20 seconds.
Financial and business terms. 2012.
