A loan or lease where (1) payment from the lessee is not received on time, (2) payments have stopped, (3) Maturity date has passed and the agreement is still unfulfilled. In these cases, the lendor grants a grace period of usually 90 days, before making a demand for either the full loan principal amount, or additional collateral. The lendor also has the power to take possession of the lessee’s collateral or take foreclosure action.
Black’s Law Online Dictionary
