Credit Default
/ˈkrɛdɪt dɪˌfɔlt/
Definitions
- (n.) Failure to fulfill the legal obligation of repaying a debt or loan as agreed in the credit agreement.
The borrower's credit default triggered the lender's right to accelerate the loan.
Forms
- credit default
Related terms
See also
Commentary
Credit default commonly refers to the event where a debtor fails to meet payment terms, fundamental in credit risk analysis and securitization.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.