Incipient default

Incipient default,

Definition of Incipient default:

  1. When it is apparent that a borrower is heading towards defaulting on their debt obligation. Incipient default can be specified with certain provisions within a loan arrangement by a lender. These provisions have the ability to place a covenant on the borrower or to impair a contractual right.

Meaning of Incipient default & Incipient default Definition