default

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

|Updated on: 15 Aug 2018

Examples: default in a Sentence

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

The default, safe option is to decline to produce the client.

— danny cevallos /, NBC News, "Giuliani suggests Trump may only sit with Mueller if conditions are met: Possible legal strategies," 7 July 2018
The company pumped funds into Digital Asset, a startup helmed by Blythe Masters, a former JPMorgan Chase executive credited, controversially, with inventing the credit default swap.

— robert hackett, Fortune, "How JPMorgan Chase Learned to Love the Blockchain," 24 May 2018
Over time, the neural systems that support fear and defensive reactions become stronger, making these responses a child’s default.

— WSJ, "As Border Separations Drag, Kids Internalize the Dread," 13 July 2018
In the past year, arena stakeholders rallied to put Yum Center on surer financial footing, staving off a potential bond default.

— allison ross, The Courier-Journal, "How KFC Yum Center became Louisville's billion-dollar baby," 12 July 2018
The judge’s decision to toss the default came after Simmons retained a new attorney — Evanston lawyer, local news reporter and former 9th Ward aldermanic candidate C. Shawn Jones — to represent her.

— genevieve bookwalter, chicagotribune.com, "Cook County judge vacates Evanston alderman's $64K default judgment," 11 July 2018
The charges accused them of deceiving investors about high rates of late payments and defaults on student loans backed by the company.

— danielle douglas-gabriel, latimes.com, "Defunct for-profit college firm ITT's former executives settle fraud charges," 10 July 2018
Information also conflicts regarding whether Cruz was present at Westglades on Dec. 3 because the attendance system used by the school district defaults to present unless manually changed.

— colleen wright, miamiherald, "Broward's PROMISE program "irrelevant" to Nikolas Cruz's massacre, commission says," 10 July 2018
The plaintiffs can file a motion for default after 30 days, which Grimes and Walker did July 2.

— neil vigdor, courant.com, "Susan Bysiewicz Unresponsive To GOP Lawsuit, Found In Default By Court Clerk," 9 July 2018

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

in the meaning defined at sense 1

See Words from the same year

default Synonyms

Synonyms

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

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

When students began defaulting en masse around 2011, all investors could rely on was the company's word, according to the SEC complaint.

— danielle douglas-gabriel, latimes.com, "Defunct for-profit college firm ITT's former executives settle fraud charges," 10 July 2018
And when students began defaulting en masse around 2011, all investors could rely on was the company’s word, according to the SEC complaint.

— danielle douglas-gabriel, Washington Post, "ITT’s top executives settle fraud charges with SEC," 9 July 2018
The government has had to amend the law to stop company owners who defaulted on debts from bidding on their own company’s assets in the course of bankruptcy proceedings.

— iain marlow, Bloomberg.com, "India’s Push to Fast-Track Bankruptcies," 26 June 2018
By 2011, Ellman defaulted on loans and Westgate was forced into foreclosure.

— jen fifield, azcentral, "GoDaddy founder, who 'doesn't do anything small,' buys Westgate district in Glendale," 12 June 2018
The Portland Christian School System, which sold the Crowes the property, claims MH Capital defaulted on its loans, missing multiple payments of more than $100,000 late last year.

— matthew glowicki, The Courier-Journal, "Credit union worker accused of stealing from cops now faces foreclosure," 6 June 2018
Henman’s opponent in the match demanded the Englishman be defaulted for the incident.

— chris chase, For The Win, "16 biggest meltdowns in tennis history," 18 May 2018
According to Business Wire, the deal to take over the club took place after the previous owner of Milan defaulted on their debt obligations to Elliott, leaving the company with a need to enforce its security interests.

— SI.com, "New Era at Milan as Ownership and Control of Club Passes to Elliott Advisors Limited," 11 July 2018
Several concerns with such districts included the risk of them defaulting, lack of integrity of how some are run and issues adhering to IRS rules, the city auditor said.

— meryl kornfield, Sun-Sentinel.com, "Developer revises Pier 66 proposal, as city readies vote," 10 July 2018

Origin and Etymology of default

see ¹default

NEW! Time Traveler

First Known Use: 15th century

in the meaning defined at intransitive sense 1

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