### Question
How is the "default" defined?


### Answer
The term **default** is defined in *12 U.S.C. § 2277a* as follows -

> a failure to comply with the terms of a loan or other obligation to such an extent that the property securing the obligation is foreclosed upon

#### Citation:
  - *12 U.S.C. § 2277a*
  - Heading: **CHAPTER 23-FARM CREDIT SYSTEM > SUBCHAPTER V-FARM CREDIT ADMINISTRATION ORGANIZATION > Part E-Farm Credit System Insurance Corporation**

