Definition of default
- was in default on her loan
- mortgage defaults
- The defendant is in default.
- lost the game by default
- remained the club's president by default
- the default candidate
- using the default settings
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?
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.
First Known Use: 14th century
in the meaning defined at sense 1
See Words from the same yeardelinquency, dereliction, failure, neglect, negligence, nonfeasance, oversight;
compliance, discharge, fulfillment (or fulfilment);
carelessness, heedlessness, inadvertence, inadvertency, laxity;
If the borrower defaults, the bank can take the house.
The program defaults to a standard font.
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.
First Known Use: 15th century
in the meaning defined at intransitive sense 1
See Words from the same yearA default is a violation of a promise to pay debt in agreed amounts at agreed times.
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.
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.
: 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
: 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 words that rhyme with default Thesaurus: All synonyms and antonyms for default Spanish Central: Translation of default Nglish: Translation of default for Spanish speakers Britannica English: Translation of default for Arabic speakers
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