Default and Workout Procedures
Default terms explain status changes, notices, workout updates, and the holder-evidence path when obligations are not performed.
Differentiate early failure from formal default
The status model distinguishes a missed or delayed performance event from a formal default state. That distinction affects what holders see, what open orders or transfers may continue, and what cure or workout path remains available.
Once the instrument becomes risk-elevated, warnings, order handling, updated repayment schedules, and evidence access become explicit.
Status ladder to publish
- Live or performing.
- Technical default or delayed performance, if the program uses an intermediate status.
- Default or non-performance once the formal trigger is met.
- Workout or revised-payment status where a cure path is active.
- Closed or extinguished once the obligation is fully resolved.
Required workout disclosures
- Current payment notices and overdue amounts.
- Updated repayment or cure schedule where one exists.
- Warnings shown to existing or new buyers when a defaulted instrument remains visible.
- The holder-evidence path for statements, obligations reports, and governing terms.