### Question
How is the term in danger of default defined?


### Answer
The term **in danger of default** is defined in *12 U.S.C. § 5390* as the following:

> a covered financial company with respect to which the Corporation or appropriate State authority has determined that—


(aa) in the opinion of the Corporation or such authority—


(AA) the covered financial company is not likely to be able to pay its obligations in the normal course of business

#### Citation:
  - *12 U.S.C. § 5390*
  - Heading: **CHAPTER 53-WALL STREET REFORM AND CONSUMER PROTECTION > SUBCHAPTER II-ORDERLY LIQUIDATION AUTHORITY**

