"default liability" is correct and usable in written English.
It refers to the responsibility of a party to pay a debt or other legal obligation if the other party fails to fulfill it, such as if a borrower fails to repay a loan. Example: If the borrower defaults on their loan, the bank will be able to collect damages from its default liability agreement with the borrower.
First, it let the banks default on liabilities to overseas creditors, including deposits in offshore accounts.
Some modicum of confidence about short-term lending is returning, and some of the worst-case scenarios about credit-default-swap liabilities are easing, but, overall, the credit and financing markets, including the municipal-bond market critical to state and local governments, remain almost frozen.
If the ECB offered more liquidity to Cypriot banks to cover deposit withdrawals, and the banks collapsed anyway, then Cyprus could still leave the euro and default on its liabilities under the Target 2 system (Europe's interbank payment system).
Businesses that do not form corporations may be deemed sole proprietorships or general partnerships by default and have unlimited liability.
Athens is due to repay €1.6bn to the International Monetary Fund on 30 June – but the country has run out of cash and without a €7.2bn bailout payment from its creditors before the end of the month it would become the first eurozone country in the history of the currency bloc to default on its sovereign liabilities.
The rules, which took effect last week, exclude interest-only loans from "qualified mortgage" status, which protects lenders from liability over defaults.
They present a higher risk of defaulting on your liabilities, rather than giving you above average returns.
We argue that surplus invariance is a reasonable requirement from a regulatory perspective, since the corresponding capital adequacy tests do not depend on the surplus of a financial institution, which benefits exclusively its shareholders, but only on the default profile, which affects its liability holders.
A wave of municipal defaults could become a huge liability for the central government, which is sitting on about $2 trillion in debt of its own.
By constantly being a step behind the speculators, Germany will eventually have to allow some combination of debt restructuring, inflating away of liabilities, or outright default in debtor countries.
That conflict appears to have its roots in a disagreement over an arcane subject: the default fiduciary duties of a limited liability company.
