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Quantitative Finance · Glossary

What is Event of default, termination event?

Also known as: event of default · termination event

Definition 18.1 The Desk and the Firm · Chapter 18 — Legal Documentation

An event of default is an event attributable to one party, such as failure to pay or deliver, breach, insolvency or default under other agreements, that allows the other party to terminate all transactions under the master agreement. A termination event is an event that is no party’s fault, such as illegality or a change of tax law, and that allows termination of the affected transactions.

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