You took a loan to get your tofu sandwich stand going. Tofun. The loan agreement stipulated that if you go 90 days late on your loan payments, you default on the deal.
You've hit some tough times. You haven't paid your loan for a few months. Finally, you beg your rich sister-in-law to help you out. She agrees, allowing you to send all the back payments to your lender. And rename the place Nofun. They get the check on the 91st day.
You technically defaulted when you went over the 90-day market, but you quickly got back in line. Temporary default. Like those people who are clinically dead for three minutes on the operating table, but get revived using those zappy paddles. They are temporarily dead, but come back.
The term also comes up in bond trading. If the issuer of a bond misses a couple interest payments, but quickly gets back on course, they are said to suffer a temporary default. It doesn't necessarily mean a full disaster. Still, the bond's credit rating will likely get downgraded.
The extent of the damage depends on the situation. There was a lot of controversy in 2011 when it looked like the U.S. might go into temporary default on its debt payments as a result of some maneuvering between the political parties. However, rating agency Fitch announced that even a temporary default would have a long-term detrimental impact on the U.S. credit rating.
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non fully employed, the non recipients of crappy health care and benefit plans, the [Man looks shocked at his medical bill]
non recipients of fancy corporate business cards those of us who choose to [Business card for Brett Corporate]
go it on our own as consultants, contractors, day laborers and
independents who self employ under the yoke of many masters trying to make our [A contractors diary]
own little way in the world, yeah. Corporations who hire contractors in
whatever form, must deliver to those contractors a form 1099 which outlines [Corporation giving out 1099s to contractors]
and stipulates the details of the job performed for the contractee. That 1099
is a direct conduit to the IRS holding out their arm to shake your hand and [The form 1099s are sent to the IRS]
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