An event specified in a commercial agreement where a non-defaulting party can terminate the agreement. Events of default are common in loan agreements or debt instruments, the happening of which entitles the lender to cancel the facility and/or declare all amounts owing by the borrower to be immediately due and payable or payable on demand. Typical events of default include non-payment of interest or principal, breach of representation, breach of covenant, cross-default, material adverse change and insolvency. However the list is often extensive.