Failure to pay: Difference between revisions

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{{g}}{{a|negotiation|}}The classic [[event of default]] in a financial {{t|contract}}. There is no more profound indication that you may be unable to honour your obligations that the fact you have actually not done so. The exception is [[stock lending]] transactions, where the failure to lend {{gmslaprov|Securities}}, or return {{gmslaprov|Securities}} or {{gmslaprov|Collateral}}, might be a result of ordinary market operation, where settlement failures are common, and one often relies on someone else — or a chain of someone elses — settling the necessary {{gmslaprov|Securities}} into you so you can settle them to your loan counterparty.
{{g}}{{a|negotiation|}}The classic [[event of default]] in a financial {{t|contract}}. There is no more profound indication that you may be unable to honour your obligations to pay a sum of money that the fact you have actually not done so.  
 
Contrast with a [[failure to deliver]] which in some contracts is tantamount in outrage to a [[failure to pay]], but in others it is just one of those things that we accept, sort out, and move on with. For example, [[stock lending]] transactions, where a failure to ''lend'' {{gmslaprov|Securities}}, or ''return'' {{gmslaprov|Securities}} or {{gmslaprov|Collateral}}, might be just one of those things: the result of ordinary market fluctuations, where settlement failures are common, and one often relies on someone else — or a chain of someone elses — settling the necessary {{gmslaprov|Securities}} into you so you can settle them to your loan counterparty.


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Revision as of 12:03, 27 June 2019

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The classic event of default in a financial contract. There is no more profound indication that you may be unable to honour your obligations to pay a sum of money that the fact you have actually not done so.

Contrast with a failure to deliver which in some contracts is tantamount in outrage to a failure to pay, but in others it is just one of those things that we accept, sort out, and move on with. For example, stock lending transactions, where a failure to lend Securities, or return Securities or Collateral, might be just one of those things: the result of ordinary market fluctuations, where settlement failures are common, and one often relies on someone else — or a chain of someone elses — settling the necessary Securities into you so you can settle them to your loan counterparty.

See also

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