default
noun
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 the absence of
default
verbDefinition of default (Entry 2 of 2)
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.
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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Synonyms for default
Synonyms: Noun
delinquency, dereliction, failure, neglect, negligence, nonfeasance, oversight
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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.
Recent Examples on the Web: Noun
In 2015, the SEC accused ITT's top brass of making secret payments on delinquent accounts to delay defaults instead of disclosing the tens of millions of dollars in impending losses to investors. — Danielle Douglas-gabriel, latimes.com, "Defunct for-profit college firm ITT's former executives settle fraud charges," 10 July 2018 But the Questions Sticker, despite the apparent evil of its default request, doesn't have to be so vain. — Madeline Buxton, refinery29.com, ""Ask Me A Question" Is Not The Only Way To Use Instagram's Questions Sticker," 12 July 2018 His natural default position is likely to Article II of the Constitution. — Jen Kirby, Vox, "7 legal experts on how Kavanaugh views executive power — and what it could mean for Mueller," 11 July 2018 Outside a small urban elite, the default position is for women not to work unless there is no other way for a family to make ends meet. — The Economist, "Culture and the labour market keep India’s women at home," 5 July 2018 There were nine defaults in the sector, including Claire's, during the three months ended March 31. — Gene Marks, chicagotribune.com, "More retailers are going bankrupt than ever," 17 Apr. 2018 As to the idea that stupid people make stupid decisions, many of the biggest disasters of recent years, from credit-default swaps to the democratisation of the Middle East, were dreamt up by clever people. — The Economist, "People without degrees are the most under-represented minority," 10 May 2018 Yet the pressures of career advancement so often become a default, at the expense of happiness. — Livia Gershon, Longreads, "Clocking Out," 11 July 2018 The cost to insure against a default on Deutsche Bank’s debt has doubled since the beginning of 2018. — Steven Arons, Bloomberg.com, "Why Deutsche Bank Can’t Just Shake Off Its Problems," 24 June 2018Recent Examples on the Web: Verb
The company also faced the real possibility of defaulting on some of its debt. — David R. Baker, SFChronicle.com, "SolarCity, once king of rooftop solar, slips into shadow," 29 June 2018 Greece, of course, went on to default on its bonds and briefly use capital controls to suspend convertibility of its euros into the euros used in the rest of the region, while no other country followed suit. — James Mackintosh, WSJ, "What to Make of Italy’s Astonishing Bond Moves," 30 May 2018 But as smartphone use in India has exploded over the past year and a half, WhatsApp became the country’s default communication mode — and the preferred medium for distributing campaign messages. — New York Times, "In India, Facebook’s WhatsApp Plays Central Role in Elections," 14 May 2018 The collections, representing more than 1.3 million defaulted federal student loans, also increased by $200 million from the 2016 federal fiscal year. — Kevin Mccoy, USA TODAY, "Tax refund got you excited? Don't count on it if your student loans are in default," 18 Apr. 2018 The outages impacted people on AT&T’s network using Voice over LTE, which many modern phones will default to if the service is supported. — Jacob Kastrenakes, The Verge, "AT&T fined $5.25 million for 911 outages that dropped at least 15,000 calls," 28 June 2018 Thousands of dollars from Subbarow’s estate arrived in India just as his family was on the verge of defaulting on its enormous debt. — Aaron Gilbreath, Longreads, "We Are Scientists," 5 June 2018 In such a scenario, rules on tariffs, imports and exports would default to World Trade Organization standards. — NBC News, "Brexit chaos: What happens next for British PM Theresa May?," 10 July 2018 Failing to lift the debt limit would default on the national debt, with permanent and potentially deep economic consequences, perhaps including a global economic meltdown. — Jonathan Chait, Daily Intelligencer, "Why Trump Is Using Hostage Tactics on Family Separation," 18 June 2018These 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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More Definitions for default
default
nounFinancial 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
English Language Learners Definition of default
(Entry 1 of 2)
: 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
verbEnglish 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
See the full definition for default in the English Language Learners Dictionary
default
noun
\
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
verbKids 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
\
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 the condition of having defaulted
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