default

noun de·fault \ di-ˈfȯlt , dē- ; ˈdē-ˌfȯlt \

Updated on: 13 Oct 2017

Definition of default

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

4 a 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

5 a :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

See default defined for English-language learners

See default defined for kids

Examples of default in a Sentence

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?

Recent Examples of default from the Web

Jonathan Cooper may win the left guard job by default.

— drew davison, star-telegram, "Chaz Green exits Cowboys preseason game with ankle injury," 26 Aug. 2017
Default rates also rose at the University of Idaho and Idaho State University.

— bill roberts, idahostatesman, "As Boise State grows, students face rising tuition and debt. Is BSU still affordable?," 25 Aug. 2017
Some of the delinquencies and defaults would not be occurring, according to the CFPB, if the firms collecting student loan payments were behaving differently.

— gail marksjarvis, chicagotribune.com, "The fastest-growing category of student debtors may surprise you: Senior citizens," 24 Aug. 2017
Women who choose to breastfeed and spend time away from their babies choose pumping by default, but what that looks and feels like varies widely.

— jen gann, The Cut, "13 Women on What Pumping Breast Milk Feels Like," 26 July 2017
Raised Depressed Uniform Dropshadow Font Family Default Monospace Serif Proportional Serif Monospace Sans-Serif Proportional Sans-Serif Casual Script Small Caps Defaults Done Skip in Skip x Embed x Share CLOSE WARNING: Strong language.

— the washington post, AL.com, "Florida teens laugh and film screaming man as he drowns," 21 July 2017
Complicating matters for the bank are personal guarantees Trump gave when negotiating debt from 2012 to 2015, which allow the lender to go after Trump’s other assets in a default, a person familiar with the matter told Bloomberg in March.

— cindy roberts, Bloomberg.com, "Deutsche Bank Expects Subpoenas Over Russia Probe, Guardian Says," 20 July 2017
The company said the technical default, a formal notice triggered by its failure to comply with some conditions on part of its debt, had occurred because a court overseeing the case had frozen Sistema assets used as collateral for the loans.

— andrew e. kramer, New York Times, "In Russia, Battle Between Rosneft and Private Firm Stirs Investment Worries," 17 July 2017
RTF stands for Rich Text Format and is the default file-name extension for Wordpad files.

— don edrington computer tutor, sandiegouniontribune.com, "How are PDF, ZIP and RTF files used?," 30 June 2017

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.

Origin and Etymology of default

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

NEW! Time Traveler

First Known Use: 14th century

See Words from the same year

default Synonyms

Synonyms

failure, delinquency, dereliction, misprision, neglect, negligence, nonfeasance, oversight

Related Words

carelessness, heedlessness, inadvertence, inadvertency, laxity

Near Antonyms

compliance, discharge, fulfillment (or fulfilment)

default

verb

Definition of default

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

2 a :forfeit

defaulted the game

b :to exclude (a player or a team) from a contest by default

was defaulted from the tournament

—

defaulter

noun

See default defined for English-language learners

Examples of default in a Sentence

If the borrower defaults, the bank can take the house.
The program defaults to a standard font.

Recent Examples of default from the Web

Any economic sanctions, however mild, increase the risk Venezuela will default on its ballooning debt.

— fabiola sanchez and joshua goodman, chicagotribune.com, "Trump administration imposes sweeping sanctions on Venezuela," 25 Aug. 2017
Among Boise State alumni who began repaying loans in 2011, 11.4 percent had defaulted within three years, compared with 7.8 percent for borrowers who began repaying in 2009.

— bill roberts, idahostatesman, "As Boise State grows, students face rising tuition and debt. Is BSU still affordable?," 25 Aug. 2017
Big Spenders’ Mark Meadows, the North Carolina Republican who chairs the Freedom Caucus, earlier this month sought to reassure bondholders that the U.S. won’t default on its debt.

— anna edgerton, Bloomberg.com, "House Conservatives Split Over Debt Ceiling," 18 Aug. 2017
And finally, Trump defaulted to his fail-safe defense: Blaming Barack Obama.

— maggie mallon, Glamour, "Donald Trump Just Had an Unhinged Press Conference. Here Are 16 of the Most Offensive Moments," 15 Aug. 2017
For example: DeVos’s department reinstated hefty collection fees for some borrowers who have defaulted.

— valerie strauss, Washington Post, "Like it or not, Betsy DeVos has made a mark in six months as education secretary," 4 Aug. 2017
Two years earlier, Transaero ordered the 747s, but the struggling airline defaulted on payments to Boeing for the planes.

— jay bennett, Popular Mechanics, "Air Force Finds Cheap 747s That Were Owned by Russian Airline for Air Force One," 1 Aug. 2017
Some of that increase was obviously caused by a deterioration in the economy—investors realised that bond issuers were more likely to default.

— The Economist, "ButtonwoodCould bond funds break the market?," 20 July 2017
Cox said the Yum Center has been a boon for downtown Louisville, but that the arena board would have defaulted on its bond payments by 2020 if the partners didn't act.

— phillip m. bailey, The Courier-Journal, "Mayor Fischer, Metro Council pleased with KFC Yum Center deal as talks turn to city's part," 20 July 2017

Origin and Etymology of default

see ¹default

NEW! Time Traveler

First Known Use: 15th century

See Words from the same year

Financial Definition of DEFAULT

default

noun

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 Defined for English Language Learners

default

noun

Definition of default for English Language Learners

: a failure to make a payment (such as a payment on a loan)
law : failure to appear in court
computers : a setting, option, etc., that a computer uses if you do not choose a different one

default

verb

Definition of default for English Language Learners

: 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 Defined for Kids

default

noun de·fault \ di-ˈfȯlt \

Definition of default for Students

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

default

verb

Definition of default for Students

defaulted; defaulting

:to fail to do something required

He defaulted on repaying the money.

Law Dictionary

default

noun de·fault \ di-ˈfȯlt, ˈdē-ˌfȯlt \

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 1a

—

default

verb

—

defaulter

noun

— in default

:in the condition of having defaulted

Origin and Etymology of 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