Default: Difference between revisions
imported>Doug Williamson (Add link.) |
imported>Doug Williamson (Differentiate first and second definitions.) |
||
| Line 3: | Line 3: | ||
Failure to honour the terms of an agreement. | Failure to honour the terms of an agreement. | ||
For example a loan agreement, or an obligation under a futures contract. | For example, failure to honour the terms of a loan agreement, or an obligation under a futures contract. | ||
2. '' | 2. ''Borrowing and lending - documentation.'' | ||
In borrowing and lending, default clauses are the part of the documentation that protect the investor (lender). | |||
Accordingly default clauses are incorporated into loan agreements and bond indentures. | |||
Examples of default by a borrower include failure to pay interest or principal on time, and breaching a covenant. | |||
3. ''Systems design - behavioural economics - decision making''. | |||
'By default', or a 'default position', means a choice or determination that is made, when no other positive decision or initiative has been taken. | |||
| Line 22: | Line 32: | ||
Another example is the | Another example is the cognitive ''status quo bias'' to favour pre-existing conditions or choices, whatever they are. | ||
== See also == | == See also == | ||
* [[Acceleration]] | * [[Acceleration]] | ||
* [[Bond]] | |||
* [[Bond indenture]] | |||
* [[Covenant]] | |||
* [[Credit event]] | * [[Credit event]] | ||
* [[Cross default]] | * [[Cross default]] | ||
| Line 39: | Line 52: | ||
* [[Futures]] | * [[Futures]] | ||
* [[Grace period]] | * [[Grace period]] | ||
* [[Interest]] | |||
* [[Loss Given Default]] | * [[Loss Given Default]] | ||
* [[Loan agreement]] | * [[Loan agreement]] | ||
* [[Materiality]] | * [[Materiality]] | ||
* [[Non-performing loan]] | * [[Non-performing loan]] | ||
* [[Principal]] | |||
* [[Qatar]] | * [[Qatar]] | ||
* [[Qatar Financial Centre]] | * [[Qatar Financial Centre]] | ||
Revision as of 11:39, 5 August 2021
1. Contract.
Failure to honour the terms of an agreement.
For example, failure to honour the terms of a loan agreement, or an obligation under a futures contract.
2. Borrowing and lending - documentation.
In borrowing and lending, default clauses are the part of the documentation that protect the investor (lender).
Accordingly default clauses are incorporated into loan agreements and bond indentures.
Examples of default by a borrower include failure to pay interest or principal on time, and breaching a covenant.
3. Systems design - behavioural economics - decision making.
'By default', or a 'default position', means a choice or determination that is made, when no other positive decision or initiative has been taken.
- Taxation in Qatar
- "There are two separate tax regimes in operation in Qatar and an entity is under the remit of only one regime.
- By default an entity is under the State of Qatar regime.
- Alternatively, an entity is under the remit of the Qatar Financial Centre (QFC) regime if the entity is licensed with the QFC."
- Qatar - the Treasurer's Wiki
Another example is the cognitive status quo bias to favour pre-existing conditions or choices, whatever they are.
See also
- Acceleration
- Bond
- Bond indenture
- Covenant
- Credit event
- Cross default
- Default bias
- Default fund
- Deletion
- Entity
- Event of default
- Exposure At Default
- Financial covenant
- Forbearance
- Futures
- Grace period
- Interest
- Loss Given Default
- Loan agreement
- Materiality
- Non-performing loan
- Principal
- Qatar
- Qatar Financial Centre
- Regime
- Risk
- Speculation
- Variation margin
