What defines a ground for default according to a security agreement?

A ground for default in a security agreement is primarily defined by the failure to perform or pay when due. This means that if the debtor does not fulfill their obligations under the terms of the agreement—such as failing to make a scheduled payment or not adhering to the performance requirements specified—this constitutes a default.

This definition is significant because it establishes the conditions under which the secured party can take action, such as enforcing their security interest or initiating repossession of collateral. It underscores the importance of adherence to agreed terms in the relationship between debtor and creditor, and is a standard concept in secured transactions law.

While other options touch on aspects that may affect the relationship or agreement, they do not capture the legal definition of default as clearly as the failure to perform or pay when due. For instance, a late payment or modification requests may present complications but do not directly reflect a legal ground for default as explicitly as not fulfilling payment obligations. Similarly, dissatisfaction with a product does not constitute default; it may lead to other legal issues but does not relate to the specific obligations defined in a security agreement.