See exactly what lets the lender call the loan
The events of default clause lists what allows a lender to stop further lending and demand repayment: missed payments, breached covenants, untrue representations, insolvency, default on other debt and sometimes a change of control or a material adverse change. Ask Search+ which events apply, which have a grace or cure period, and what the lender can do next, and read each cited trigger in full.
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Last updated October 2026
How to review events of default with Search+
- Upload the agreement and related debt documents
Add the loan agreement and any other financing documents that a cross-default clause might refer to. Keeping them in one workspace lets an answer connect them.
- Ask for the list, then each trigger
Ask "What are the events of default in this agreement?" and then ask about each one that concerns you, such as cross-default thresholds or change of control.
- Ask what follows a default
Ask what remedies the lender has, such as acceleration, cancelling commitments or enforcing security, and whether notice is required first. Open each citation to read the conditions.
Questions about events of default
How many days of grace apply to a missed interest or principal payment?
Does a default on other debt trigger a default here, and is there a minimum amount?
Is a change in ownership of the borrower an event of default or a mandatory prepayment event?
Does this agreement contain a material adverse change default, and how is it worded?
What can the lender do once an event of default has occurred and is continuing?
What to look for in events of default
Payment defaults often have a short grace period, and other breaches may have a longer cure period after notice. Which triggers have none is just as important.
Cross-default can be triggered by another debt being in default; cross-acceleration only when that debt is actually accelerated. The difference matters when you have several lenders.
Many cross-default and judgment defaults only apply above a stated amount. The amount varies by agreement, so read it in the cited text.
Lender remedies usually apply only while a default is continuing. Ask how a default is remedied or waived.
Search+ cites the excerpt for each event it reports, with a section reference when the agreement has one, so you can read the exact trigger.
Default wording and what it signals
| Wording you may see | What it usually signals | A follow-up question |
|---|---|---|
| "fails to pay ... within ... Business Days" | Payment default with grace | How many days, and from when? |
| "any Financial Indebtedness ... is declared due" | Cross-acceleration | Is there a minimum amount? |
| "is not remedied within ... days of notice" | A cure period | Which defaults have no cure period? |
| "Material Adverse Effect" | A broad, judgment-based trigger | How is Material Adverse Effect defined? |
| "declare all amounts immediately due" | Acceleration | Is notice required before acceleration? |
| "so long as an Event of Default is continuing" | Remedies tied to an ongoing default | How can a default be waived? |
What is an event of default in a loan agreement?
An event of default is a circumstance listed in the loan agreement that, once it occurs, allows the lender to exercise remedies such as cancelling unused commitments and demanding immediate repayment.
Questions about events of default
Can Search+ list the events of default in my loan?
Will it show me which defaults have grace periods?
Can it check whether a cross-default threshold applies?
Can it connect a default to the lender's remedies?
Is this legal advice on whether we are in default?
Know your default triggers before they matter
Start a workspace, upload the loan agreement, and ask which events let the lender act.
Start a workspace