> For the complete documentation index, see [llms.txt](https://docs.jpegd.io/jpegd-dao/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.jpegd.io/jpegd-dao/peer-2-peer-lending/for-borrowers/how-does-default-happen.md).

# How Does Default Happen

If a loan is not repaid by the expiration date, it goes into default. In this case, ownership of the NFT is transferred to the lender, who can withdraw the NFT at any time.

When creating a loan, make sure to note the expiration date.