Event of default

Sometimes known as an enforcement event, an event of default is an action a counterparty takes which justifies the innocent party from terminating the contract, closing out open transactions, and raining down fiery hell on the wronger and its affiliates, directors, officers, employees, agents and delegates.

There is specific idiosyncratic lore attaching to the events of default under differing market standard master agreements, so go with alacrity to:

• Event of Default (ISDA Master Agreement)
• Event of Default (2010 GMSLA)
• Event of Default (Global Master Repurchase Agreement)

Not to be, although easily, confused with:

• Termination Events (ISDA Master Agreement)

See also

• Cross Default
• Termination Event: a special type of half-arsed event of default arising under the ISDA Master Agreement.