Default

rositakay

Senior Member
Arabic
Hi,


In this Facility Agreement, what could be the meaning of default?
Section 3.3 No Default
The Borrower is not in default under any agreement, obligation or duty to which it is a party or by which it or any of its properties or assets is bound.

Thanks,
 
  • Wordnip

    Senior Member
    British English
    It is not clear to me what the statement means. Perhaps a lawyer/solicitor is the best person to consult because it is a legal statement and has a specific meaning. Of course the meaning of 'default' can be found in the dictionary search above but that will not shed much light on this specific agreement clause.
     

    pob14

    Senior Member
    American English
    It means "failure to act, especially to pay" - see the first definition in the Wordreference dictionary. The Borrower is saying that it hasn't breached any contracts that it signed, or that apply to any of its property (a mortgage, for example).
     

    Wordnip

    Senior Member
    British English
    It means "failure to act, especially to pay" - see the first definition in the Wordreference dictionary. The Borrower is saying that it hasn't breached any contracts that it signed, or that apply to any of its property (a mortgage, for example).
    When I replied I assumed that rositakay already knew the meaning of 'default' which is straightforward enough. I presume the problem arises in this particular clause in which its application is obscure. It sounds as if it has a very specific legal basis.
     

    pob14

    Senior Member
    American English
    Well, rotisakay asked "what could be the meaning of default." I'm not sure what is obscure about the sentence, but perhaps some clarification of the question is in order.
     

    Wordnip

    Senior Member
    British English
    Well, rotisakay asked "what could be the meaning of default." I'm not sure what is obscure about the sentence, but perhaps some clarification of the question is in order.
    No he doesn't, he asks, 'In this Facility Agreement, what could be the meaning of default'. He didn't ask us for a dictionary definition of default (use a dictionary).
     
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