default rate

An alternative higher rate of interest or a premium specified in a loan document to be added to the contractual rate of interest that can be charged by the lender if the borrower is in default. American Banker Glossary

Financial and business terms. 2012.

Look at other dictionaries:

  • Default Rate — This rate can be used in reference to two main things: 1. The rate of borrowers who fail to remain current on their loans. It is a critical piece of information used by lenders to determine their risk exposure and economists to evaluate the… …   Investment dictionary

  • Cohort default rate — A cohort default rate is the percentage of a school s borrowers who enter repayment on certain loans during a federal fiscal year (October 1 to September 30) and default prior to the end of the next one to two fiscal years[1]. The United States… …   Wikipedia

  • Constant Default Rate - CDR — An annualized rate of default on a group of mortgages, typically within a collateralized product such as a mortgage backed security (MBS). The constant default rate represents the percentage of outstanding principal balances in the pool that are… …   Investment dictionary

  • default interest provision — A provision in a contract which: • Provides a contractual sanction against non payment of a sum of money; and • Is a form of liquidated damages for that non payment. A default interest provision is nearly always included in an agreement where… …   Law dictionary

  • Default argument — In computer programming, a default argument is an argument to a function that a programmer is not required to specify. A default value is specified when the function is declared and the default value is automatically passed to the function when… …   Wikipedia

  • Default trap — The default traps in sovereign borrowing refers to the idea that once a country falls into a default, it is more likely to default again in the future, compared to another country with identical future output ability. The idea of default traps is …   Wikipedia

  • Default (finance) — Finance Financial markets Bond market …   Wikipedia

  • Default Probability — The degree of likelihood that the borrower of a loan or debt will not be able to make the necessary scheduled repayments. Should the borrower be unable to pay, they are then said to be in default of the debt, at which point the lenders of the… …   Investment dictionary

  • Default network — Graphs of the dynamic development of correlations between brain networks. (A) In children the regions are largely local and are organized by their physical location; the frontal regions are highlighted in light blue. (B) In adults the networks… …   Wikipedia

  • Default notice — All credit applications (e.g., personal loans, credit cards or store cards) opened in the United Kingdom are regulated by the Consumer Credit Act 2006. This piece of legislation requires that creditors must issue a default notice to any customer… …   Wikipedia

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