default

noun
de·​fault | \ di-ˈfȯlt How to pronounce default (audio) , dē-; ˈdē-ˌfȯlt \

Definition of default

 (Entry 1 of 2)

1 : failure to do something required by duty or law : neglect
2 archaic : fault
3 economics : a failure to pay financial debts was in default on her loan mortgage defaults
4a law : failure to appear at the required time in a legal proceeding The defendant is in default.
b : failure to compete in or to finish an appointed contest lost the game by default
5a : a selection made usually automatically or without active consideration due to lack of a viable alternative remained the club's president by default the default candidate
b computers : a selection automatically used by a program in the absence of a choice made by the user using the default settings
in default of
: in the absence of

default

verb
defaulted; defaulting; defaults

Definition of default (Entry 2 of 2)

intransitive verb

1 : to fail to fulfill a contract, agreement, or duty: such as
a : to fail to meet a financial obligation default on a loan
b law : to fail to appear in court
c : to fail to compete in or to finish an appointed contest also : to forfeit a contest by such failure
2 computers : to make a selection automatically in the absence of a choice made by the user The program defaults to a standard font.

transitive verb

1 : to fail to perform, pay, or make good default a loan
2a : forfeit defaulted the game
b : to exclude (a player or a team) from a contest by default was defaulted from the tournament

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Other Words from default

Verb

defaulter noun

Examples of default in a Sentence

Noun The defendant has made no appearance in the case and is in default. You can enter your own settings or use the defaults. Which font is the default in that computer program? Verb If the borrower defaults, the bank can take the house. The program defaults to a standard font.
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Recent Examples on the Web: Noun Investors are resigned to a certain amount of losses, and the government has tried to keep things friendly by avoiding rhetoric that demonized creditors, a hallmark of the country’s battles with hedge funds after its 2001 default. Patrick Gillespie, Bloomberg.com, "Argentina to Rework Debt Offer After Missed Interest Payment," 24 May 2020 During times of stress, your brain defaults to flight-or-fight survival mode, Robinson said. Anchorage Daily News, "Rhythm, routine, and rituals: How to protect your mental health while self-isolating," 19 May 2020 Our analysis suggests that investors believe European countries with similar coronavirus infection rates have very different probabilities of default. Fortune, "Coronavirus is making clear there is no solidarity in the EU," 2 May 2020 My default is anxiety and my husband’s is anger, but thankfully the kids seem to, so far, be fairly insulated from any emotional effects of the pandemic. Mary Pembleton, New York Times, "A Pulse of Joy Amid Tragedy," 17 Apr. 2020 Last month, Beirut announced its first ever debt default. Tamara Qiblawi, CNN, "US citizens in Lebanon decline repatriation offer, saying it's 'safer' in Beirut," 9 Apr. 2020 Reuters/Brendan McDermid There’s never a good time for a wave of corporate defaults. John Detrixhe, Quartz, "As the economy plunges, debate is growing over a bailout for junk bonds," 8 Apr. 2020 Otherwise, when banks make a loan, they are typically required to hold some cash in reserve in the case of default. CBS News, "Stocks surge on signs new coronavirus deaths could be slowing," 6 Apr. 2020 Plug those in to upgrade your laptop's defaults, which are likely too small and not at all ergonomic. Ars Staff, Ars Technica, "Suddenly working at home? We’ve done it for 22 years—and have advice," 15 Mar. 2020 Recent Examples on the Web: Verb Meanwhile, Argentina, Ecuador, and Colombia have banned utility shut-offs for tenants defaulting on payment during the pandemic, and in Peru low-income homes were told they could postpone payment of utility bills. The Christian Science Monitor, "How Latin American slums are leading the fight against COVID-19," 26 May 2020 But since late 2019, Lebanon’s economic woes has seen the Lebanese pound lose half of its original value, while the country eventually defaulted on its external debts. Zecharias Zelalem, Quartz Africa, "Thousands of Ethiopian domestic workers are stranded in Lebanon by the coronavirus crisis," 21 May 2020 That has put some of the largest chains at risk of defaulting on the debt that has piled up over a recent period of acquisitions and renovations. Dan Gallagher, WSJ, "Not Playing at a Theater Near You," 4 Apr. 2020 But banks themselves are under stress, with cash reserves dwindling until the Fed's recent injections and companies at risk of defaulting on their loans as revenue dries up. Paul Davidson, USA TODAY, "Fed revives funding for business loans, called commercial paper, as coronavirus stresses market," 17 Mar. 2020 The bank accused the company of defaulting on $6 million in loans and facing insolvency, which Kenny Garcia has disputed. Patrick Danner, ExpressNews.com, "Fort Worth firm buys San Antonio food company at bankruptcy auction," 6 Dec. 2019 Sachs added that once again Uber is defaulting to billing itself as an app that connects people to work opportunities, rather than carrying the burden of being an employer. Lisa Marie Segarra, Fortune, "Announcing Uber Works, the Ride-Hailing Giant Changes Lanes into Temporary Work," 3 Oct. 2019 But with the top-line figures all but secured, the deal would be the end of the Budget Control Act, which President Barack Obama signed into law after House Republicans pushed the government to the brink of defaulting on its debt. Emily Cochrane, New York Times, "Federal Budget Would Raise Spending by $320 Billion," 22 July 2019 Mnuchin has said that under one of the Treasury Department’s most conservative estimates, the US will be at risk of defaulting on payment obligations in early September -- before lawmakers are scheduled to return from their summer recess on Sept. 9. Jennifer Jacobs, BostonGlobe.com, "Trump says debt limit talks in ‘good shape’ after Pelosi rebuff," 19 July 2019

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'default.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of default

Noun

14th century, in the meaning defined at sense 1

Verb

15th century, in the meaning defined at intransitive sense 1

History and Etymology for default

Noun and Verb

Middle English defaute, defaulte, from Anglo-French, from defaillir to be lacking, fail, from de- + faillir to fail

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Time Traveler for default

Time Traveler

The first known use of default was in the 14th century

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Statistics for default

Last Updated

4 Jun 2020

Cite this Entry

“Default.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/default. Accessed 5 Jun. 2020.

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More Definitions for default

default

noun

Financial Definition of default

What It Is

A default is a violation of a promise to pay debt in agreed amounts at agreed times.

How It Works

Let's assume Company XYZ has a line of credit for $10 million from Bank ABC, and $5 million of that line is outstanding. Company XYZ must make a $25,000 monthly payment on the outstanding debt every month.

Company XYZ is having trouble with the launch of its new product and is dealing with a recall on four of its other products. Sales dropped 75% and cash flow dried up, making it hard to make the debt payments. For a few months, Company XYZ makes late payments, and then after six months it stops making payments altogether. Bank ABC declares Company XYZ in default and demands immediate repayment of the $5 million outstanding principal.

This of course is very hard for Company XYZ to handle, and Bank ABC begins the process of seizing the collateral that secured the debt. Without these assets (let's say they're machinery), Company XYZ cannot continue production and thus closes its doors.

In general, there are six events involved in a default (in this example, we assume the borrower has obtained a mortgage for a house from the lender).

1. The borrower signs a contract agreeing to repay the lender over a period of time, usually in predetermined installments.
2. The borrower misses one or more payments.
3. The lender sends the borrower one or more notices of delinquency.
4. The borrower and the lender try to adjust the repayment schedule so that the borrower is more likely to make at least some of the payments until he or she gets back on his feet. (This process is called special forbearance or mortgage modification.)
5. The borrower still misses payments.
6. The lender sends the borrower a notice of default and initiates foreclosure proceedings.

Why It Matters

Defaults are serious matters, and they are far more serious than simply being overdue in a payment (though this can trigger a lender to declare default). Foreclosure occurs when a lender seizes and sells a borrower's collateral when the borrower has failed to repay the lender. The term is most often associated with real estate.

Defaults do long-term damage to a person's credit report and can hinder a company's ability to raise capital in the future. It is important to note that foreclosure laws vary by state, and they affect the order or duration of these steps. It is also important to note that the federal Fair Debt Collection Practices Act affects foreclosure proceedings by stipulating the methods lenders can use to go after bad debts.

Default risk is the chance that a bond issuer will not make the required coupon payments or principal repayment to bondholders. Many things can influence an issuer's default risk and in varying degrees. Examples include poor or falling cash flow from operations (which is often needed to make the interest and principal payments), rising interest rates (if the bonds are floating-rate notes, rising interest rates increase the required interest payments), or changes in the nature of the marketplace that would adversely affect the issuer (such as a change in technology, an increase in competitors or regulatory changes). The default risk associated with foreign bonds also includes the home country's sociopolitical situation and the stability and regulatory activity of its government.

Source: Investing Answers

default

noun
How to pronounce default (audio)

English Language Learners Definition of default

 (Entry 1 of 2)

used to describe something that happens or is done when nothing else has been done or can be done usually used in the phrase by default sometimes used before another noun
: a failure to make a payment (such as a payment on a loan)
law : failure to appear in court

default

verb

English Language Learners Definition of default (Entry 2 of 2)

: to fail to do something that legally must be done especially : to fail to make the payments you must make on a loan, mortgage, etc.
of a computer : to automatically use a particular setting, option, etc., unless you choose a different one

default

noun
de·​fault | \ di-ˈfȯlt How to pronounce default (audio) \

Kids Definition of default

 (Entry 1 of 2)

: failure to do something especially that is required by law or duty If we miss the game, we'll lose by default.

default

verb
defaulted; defaulting

Kids Definition of default (Entry 2 of 2)

: to fail to do something required He defaulted on repaying the money.

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default

noun
de·​fault | \ di-ˈfȯlt, ˈdē-ˌfȯlt How to pronounce default (audio) \

Legal Definition of default

1 : failure to do something required by duty (as under a contract or by law): as
a : failure to comply with the terms of a loan agreement or security agreement especially with regard to payment of the debt
b in the civil law of Louisiana : a delay in performing under a contract that is recognized by the other party

Note: A party whose performance under a contract is delayed is not automatically in default. Rather, the law of Louisiana requires that the other party “put him or her in default” by a written or witnessed oral request for performance, by filing suit, or by invoking a specific provision in the contract. Moratory damages may be recoverable for loss caused by the delay.

2 : failure to defend against a claim in court (as by failing to file pleadings or to appear in court) — see also default judgment at judgment sense 1a
in default
: in the condition of having defaulted

Other Words from default

default verb
defaulter noun

History and Etymology for default

Anglo-French defalte defaute lack, fault, failure to answer a summons, from defaillir to be lacking, fail, from de-, intensive prefix + faillir to fail

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More from Merriam-Webster on default

Thesaurus: All synonyms and antonyms for default

Rhyming Dictionary: Words that rhyme with default

Spanish Central: Translation of default

Nglish: Translation of default for Spanish Speakers

Britannica English: Translation of default for Arabic Speakers

Comments on default

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