Collateral minimizes the risk for lenders. If a borrower defaults on the loan, the lenders can seize the collateral and sell it to recoup its losses.
To failed to do something such as pay a debt. Failure to do something required by duty and law or a failure to pay financial debts.
A default occurs when a borrower is unable to make timely payments or misses payments.
Something to fail to pay money that you owe at the right timedefault. Default is when you fail to pay your credit card bill.
2. Failure to appear at the required time in a legal proceeding. Fail to fulfil an obligation, especially to repay a loan or to appear in a law court.
3. Of a computer program or other mechanism revert automatically to a preselected option. “When you start a fresh letter the system will default to its own style”.