The failure of a company to satisfy its contractual agreements and covenants in loan agreements and mezzanine securities documents. Common events of default include failure to pay principal, interest, or dividends when due; violation of the company's representations, warranties, or covenants; or becoming insolvent. Securities documents provide that upon an event of default, investors have specified remedies that can be exercised, including increased interest rates or dividends, the ability to take possession of collateral, or, in extreme cases, the ability to control the company through electing a majority of the board of directors. Certain events of default can be remedied by payment of money or otherwise, and companies sometimes have contractual rights to fix the default within a specified time period called the cure period or the grace period. If the event of default is remedied within the cure period, then the company is no longer in default and the remedies are no longer available. Some events of default constitute breaches of trust that cannot be restored, such as the intentional violation of a covenant by a company. For these latter kinds of events of default, there are usually no cure periods or methods for the company to get back in compliance so that all of the investors' remedies are exercisable.