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[[File:lighterstill.jpg]][[File:default.jpg|right|frame]]

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==Law==

==Law==

In [[law]], a '''default''' is the failure to do something required by [[law]] or to appear at a required [[time]] in legal proceedings.

In [[law]], a '''default''' is the failure to do something required by [[law]] or to appear at a required [[time]] in legal proceedings.

Entry of default in the United States district courts is governed by Rule 55 of the Federal Rules of Civil Procedure.

Entry of default in the United States district courts is governed by Rule 55 of the Federal Rules of Civil Procedure.

==Default Judgment==

==Default Judgment==

is a binding [[judgment]] in favor of the plaintiff when the defendant has not responded to a summons or has failed to appear before a court of [[law]].

is a binding [[judgment]] in favor of the plaintiff when the defendant has not responded to a summons or has failed to appear before a court of [[law]].

There are several financial models for analyzing default risk, such as the Jarrow-Turnbull model, Edward Altman's Z-score model, or the structural model of default by Robert C. Merton (Merton Model).

There are several financial models for analyzing default risk, such as the Jarrow-Turnbull model, Edward Altman's Z-score model, or the structural model of default by Robert C. Merton (Merton Model).

==Sovereign defaults==

==Sovereign defaults==

Sovereign borrowers such as nation-states generally are not subject to bankruptcy courts in their own jurisdiction, and thus may be able to default without legal consequences. One example is with North Korea, which in 1987 defaulted on some of its loans. In such cases, the defaulting country and the creditor are more likely to renegotiate the interest rate, length of the loan, or the principal payments[2]. In the 1998 Russian financial crisis, Russia defaulted on its internal debt (GKOs), but did not default on its external Eurobonds. As part of the Argentine economic crisis in 2002, Argentina defaulted on $1 billion of debt owed to the World Bank.[3]

Sovereign borrowers such as nation-states generally are not subject to bankruptcy courts in their own jurisdiction, and thus may be able to default without legal consequences. One example is with North Korea, which in 1987 defaulted on some of its loans. In such cases, the defaulting country and the creditor are more likely to renegotiate the interest rate, length of the loan, or the principal payments[2]. In the 1998 Russian financial crisis, Russia defaulted on its internal debt (GKOs), but did not default on its external Eurobonds. As part of the Argentine economic crisis in 2002, Argentina defaulted on $1 billion of debt owed to the World Bank.

*'''''[[The Default]]'''''

 

==References==

==References==

# Sullivan, arthur; Steven M. Sheffrin (2003). Economics: Principles in action. Upper Saddle River, New Jersey 07458: Pearson Prentice Hall. pp. 261. ISBN 0-13-063085-3.

# Sullivan, arthur; Steven M. Sheffrin (2003). Economics: Principles in action. Upper Saddle River, New Jersey 07458: Pearson Prentice Hall. pp. 261. ISBN 0-13-063085-3.