A failure—typically by a borrower—of a party to honor one or more of its obligations to another—typically a secured creditor—under the terms of an agreement between parties. In loan transactions, “events of default,” are likely to be specifically defined by the parties to a loan agreement. The occurrence of an event of default will give rise to the ability of the non-defaulting party to exercise various remedies against the defaulting party, which likely include the ability to foreclose, repossess, and liquidate certain collateral.

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