Technical Default  

A default under the bond indenture terms, other than nonpayment of interest or principal.
Examples of technical default are failure to maintain required reserves, or to maintain adequate fees and charges for service.

Remarks: Bond funds including mutual funds (open-end and closed-end, actively managed and indexed), exchange-traded funds and unit investment trusts offer a convenient and affordable way to invest in a diversified portfolio of bonds, but a bond fund investment can differ from a bond investment in ways that are important to understand.