nondefaulting
Nondefaulting is an adjective used in finance and contract law to describe a party, instrument, or obligation that has not defaulted on its financial commitments. Default typically means failure to meet payment obligations, breach of covenants, insolvency, or cross-default under a debt agreement. A nondefaulting status indicates that such triggers have not occurred and, in many contracts, allows continued performance, access to credit, or eligibility for favorable terms.
In lending, a nondefaulting borrower maintains timely payments and compliance with covenants, whereas a defaulting borrower
In securities markets, nondefaulting counterparty refers to participants that are current on obligations in systems such
Credit risk assessments often focus on the likelihood that a borrower will remain nondefaulting, or conversely,