Any default under the terms of the Agreement, this Correspondent Sellers Guide or the Master Servicer Guide, as applicable.
A bond that ceases to pay interest (because the issuer has financial problems) is in default of the terms of the bond agreement, and is said to be in default. Clearly, purchasing a bond in default is an extremely risky investment.
When the issuer of a bond does not maintain interest payments or repay the face value of theÂ bond at maturity.
A default takes place when the debtor is not able to repay debts according to the specified agreement.
A term used when a person or company breaks the terms of an agreement.