Event of default

The event of breaching a loan agreement.

Each loan agreement will normally define exactly what constitutes an event of default of that agreement.

Events of default will generally include:

• any failure to pay interest or capital on a due date,
• any failure to comply with a covenant, and
• any inability to repeat a representation.

See also

• Acceleration
• Breach of covenant
• Covenant
• Cross default
• Default
• Financial covenant
• Grace period
• Loan agreement
• Material adverse change
• Representations and warranties
• Waiver
• Putting a limit on losses