Technical Default

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Dictionary Says

Definition of 'Technical Default'

A deficiency in a loan agreement that arises not from a failure to make payments as promised, but from a failure to uphold some other aspect of the loan terms. Technical default indicates that the borrower may be in financial trouble, and can trigger an increase in a loan's interest rate, foreclosure or other negative events.
Investopedia Says

Investopedia explains 'Technical Default'

For example, a real estate co-op can go into technical default if it has failed to keep up with building maintenance and repairs, even though the mortgage is paid up. Homeowners with mortgage payments that are current can find themselves in technical default if they fail to pay property taxes or homeowner's insurance premiums. A corporation could go into technical default if it falls short of meeting promised operating ratios, such as the proportion of debt-to-equity, even if it has been making all loan payments as agreed.
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'Technical Default'

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  • Facing Co-Op Bankruptcy

    http://www.investopedia.com/articles/mortgages-real-estate/09/facing-co-op-bankruptcy.asp
    ... However, it pays to be vigilant." A technical default could lead to bankruptcy if
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  • 7 Things You Didn’t Know About Sovereign Debt Defaults ...

    http://financialedge.investopedia.com/financial-edge/0911/7-Things-You-Didnt-Know-About-Sovereign-Debt-Defaults.aspx
    ... the union. Since some of this new debt didn't start paying interest until
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  • Exploring Oscillators and Indicators: Introduction | Investopedia

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    ... By Chad Langager and Casey Murphy, senior analyst of ChartAdvisor.com Technical
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  • Impairment Charges: The Good, The Bad and The Ugly

    http://www.investopedia.com/articles/analyst/110502.asp
    ... ratio to exceed the maximum 70%. In this situation, NetcoDOA is in technical
    default of its loan. The bank has the right to either ...

  • Financial Statements: Long-Term Liabilities | Investopedia

    http://www.investopedia.com/university/financialstatements/financialstatements8.asp
    ... Look at the Covenants Covenants are provisions that banks attach to long-term debt
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  • Dow Theory: Introduction | Investopedia

    http://www.investopedia.com/university/Dowtheory/default.asp
    ... By Chad Langager and Casey Murphy, senior analyst of ChartAdvisor.com Any attempt
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  • Moving Averages: Introduction | Investopedia

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