Event of Default

Definition:

An action or circumstance that allows a lender (or bondholder) to demand full repayment of an outstanding balance sooner than it was originally due. Circumstances that may trigger an Event of Default include non-payment, late payments or the breach of Covenants. Depending on the nature of the Default, the terms of the Debt Instrument may permit the debtor or issuer an opportunity to cure the Default but if such Default is not cured, it matures into an Event of Default.

See also Default.

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