Definition : Forfeiture of the term

Loss of the benefit of the term incurred as a sanction by the debtor, thereby making the debt immediately payable. According to article 1514 of the Civil Code of Quebec, it occurs when the debtor becomes insolvent, is declared bankrupt, reduces the securities without consent, or fails to comply with the conditions agreed upon. This sanction can be included notably in a credit agreement or a declaration of co-ownership.