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


### Answer
The term **default** is defined in *12 U.S.C. § 5390* 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. § 5390*
  - Heading: **CHAPTER 53-WALL STREET REFORM AND CONSUMER PROTECTION > SUBCHAPTER II-ORDERLY LIQUIDATION AUTHORITY**

