The LMA: Events of Default course covers what happens when a borrower breaches the loan agreement, and why the answer decides the balance of power between borrower and lender. It works from the Loan Market Association standard form.

The course opens with acceleration, the right that makes the rest of the agreement work. Acceleration makes the accelerated amounts immediately due and payable. This can create severe liquidity pressure and give lenders leverage in negotiations. Participants see why an agreement includes 25 or 30 events of default when a lender only cares about being repaid: each gives the lender the right to accelerate, and the ability to renegotiate.

From there, participants work through the distinction between a Default and an Event of Default. Default is the broader term: it includes an Event of Default and specified events that would become Events of Default after a grace period expires, notice is given, a required determination is made, or a combination of those steps. A Default that has not yet become an Event of Default is the orange light. An Event of Default is the red light. The course covers where that distinction should decide the drafting: conditions precedent, rollover loans, and margin ratchets.
The course then examines the definition of continuing, buried in the interpretation clause without a capital letter. Whether an Event of Default continues until remedied or waived, or only until waived, decides whether a borrower can still cure after the grace period. Grace periods, reservation of rights letters, and estoppel are covered alongside it.

By the end, participants will be able to read a default clause and say what triggers it, what a borrower can still do about it, and what the lender group gains when it is triggered. They will also recognize the drafting choices that move power between the parties.