Event of default
Event of default: an event, circumstance or condition giving lender immediate rights under the loan agreement. For a lender to declare the event of default, the default should be continuing (or existing). If the borrower takes steps to remedy the event, for example by repaying the amount owed under the agreement, a lender cannot declare an event of default or exercise any of its rights. Generally, rights available to lenders are the right to demand immediate payment of any outstanding sums of the loan, terminate any of its commitment to advance further loans, and exercise a right against any collateral used to secure the loan.
