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 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.
The occurrence of any one of the following: (a) the death or judicial declaration of incompetence of Customer, if Customer is a natural person; (b) the filing of a petition in bankruptcy, or a petition for the appointment of a receiver, or the institution of any bankruptcy, insolvency or similar proceeding by or against Customer; (c) the filing of an attachment against any of Customer's Accounts carried by FOREX.com; (d) failure to pay when due any amount due under this Agreement or any Contract or other transaction hereunder or to deliver to FOREX.com when due any Margin or Collateral required or requested by FOREX.com in connection with this Agreement or any Contract or other transaction hereunder; (e) Customer's failure to promptly provide FOREX.com any information requested pursuant to this Agreement; (f) any representation made by Customer in this Agreement (including the Annexes) is or at any time becomes, untrue or incorrect; and (g) any breach by Customer of any other provision of this Agreement, including the Annexes.
The failure of a company to satisfy its contractual agreements and covenants in loan agreements or mezzanine securities documents. Common events of default include failure to pay principal, interest, or dividends when due; violation of the company's representations, warranties, or covenants; or becoming insolvent.
A covenant, term or a condition of a long term loan which when broken by the borrower causes the loan to become immediately due and payable.
An event described in the promissory note or security agreement which allows the lender to declare the note due and payable, and to commence an action to collect the note and to foreclose upon the secured assts. Typical events of default include: (1) the debtor’s failure to make payments required under the terms of the promissory note; (2) dissolution or termination of the debtor’s business; (3) commencement of a foreclosure action by another creditor; (4) the debtor’s breach of a warranty or representation made to the lender; or (5) commencement of a bankruptcy or other insolvency proceeding by the debtor.
One of a list of events, the happening of which entitles the lender(s), under the terms of the relevant credit facility or debt instrument, to cancel the facility and/or declare all amounts owing by the debtor(s) to be immediately due and payable. Events of default typically include non-payment of amounts owing to the lenders, breach of covenant, cross-default, insolvency and material adverse change.