Default
Default: Failure of a borrower to make
scheduled loan or mortgage payments when they are due, or
failure to fulfil any other term or condition
of the agreement. In finance, default
is what occurs when a party is unwilling or unable to pay
their debt obligations. This can occur with all debt
obligations including bonds, debentures, mortgages, loans,
and promissory notes. Default can also occur with sovereign
bonds, that is, governments can default on their payments to
creditors.
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