Occurs when a borrower does not meet its obligations under an agreement. For instance, a borrower under a loan agreement does not make a scheduled payment or violates a covenant. Under most agreements, a default will ripen into an event of default after any required notice is given or upon the lapse of a specified grace period. Parties generally cannot exercise their remedies until an event of default (rather than a default) has occurred with respect to the other party to the agreement. For more information on defaults, see Practice Note, Loan Agreement: Events of Default and Standard Clauses, Loan Agreement: Events of Default.