Default
The failure, for whatever reason, to make a payment or fulfill
a commitment.
Default occurs when a debtor has not met its legal obligations according to the debt
contract, e.g. it has not made a scheduled payment, or has violated a loan covenant
(condition) of the debt contract. Default may occur if the debtor is either unwilling
or unable to pay their debt.
This can occur with all debt obligations including bonds, mortgages, loans, and
promissory notes.
