An event specified in a commercial agreement that gives the non-defaulting party the right, among other things, to terminate the agreement. Typical events of default include non-payment or late payment of amounts due, breach of certain material representations and warranties or covenants, cross-default, breach of change of control provisions, and insolvency. Events of default are common in many types of contracts, including loan agreements or debt instruments. An event of default in a loan agreement entitles the lender to cancel the facility and/or declare all amounts owing by the borrower to be immediately due and payable.