The Uniform Commercial Code does not define loan default.

Generally,when a debtor fails to make payments on a loan or declares bankruptcy,the debtor has defaulted on the loan.However,the Uniform Commercial Code does not define default.Consequently,each security agreement provides a specific definition of what is considered a default.Moreover,each agreement determines the procedures and consequences that occur in the event of default.Because the creditor is usually in a better bargaining position,the creditor usually determines the definition of default.