Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
31 Cards in this Set
- Front
- Back
|
secured creditor
|
when a debtor borrows money, priority is ensured to this type of creditor
|
|
|
personal property
|
tangible movable things and intangible rights that are legally enforceable
|
|
|
pledge
|
item that creditor takes possession of as security and holds until repayment
|
|
|
conditional sales agreement
|
seller provides credit to purchaser by holding title of the goods
- possession of goods given to buyer (debtor), seller (creditor) retains the title |
|
|
chattel mortgage
|
debtor loans credit from creditor by securing the loan
- possession of goods retained by debtor, creditor retains title |
|
|
operating lease
|
goods rented to lessee and returned to lessor
|
|
|
lease to purchase
|
after final payment by lessee, title of goods passed to lessee
|
|
|
attachment
|
debtor receives some value under the contract, gives creditor rights against the assets used as security if there is a default
|
|
|
perfection
|
protection of a secured creditor's claim
-accomplished two ways: - registration of security obligation at government agency - obtain physical possession of collateral used |
|
|
purchase money security interest (PMSI)
|
security interest that has priority over general security agreement if registered within specific time
|
|
|
right to redeem
|
give chance to debtor to redeem goods by paying amount owed
|
|
|
guarantee
|
secondary obligation. written commitment which guarantor agrees to pay debt if debtor defaults
|
|
|
guarantor
|
person assuming obligation to pay if the debtor does not
|
|
|
continuing guarantee
|
allows creditor to continue to advance funds up to pre-set limit without affecting obligation of guarantor
|
|
|
floating charges
|
a security not fixed on any particular assets until default or some other specified event
|
|
|
holdback
|
a specified percentage that a person owing funds on a construction contract must retain for a specified period to protect against claims made by the suppliers of goods and services
|
|
|
fraudulent transfer
|
debtors transfer of property in an attempt to keep it out of creditors hands
|
|
|
bona fide purchaser for value
|
innocent third party who has paid a fair price for goods under claim by creditor
|
|
|
fraudulent preference
|
debtors payment of money to one creditor to give that creditor preference over other creditors
|
|
|
insolvency
|
person is unable to pay debts as they become due
|
|
|
bankruptcy
|
process which debtors assets transferred to a trustee in bankruptcy who deals with them for benefit of creditor
|
|
|
assignment in bankruptcy
|
debtor voluntarily makes transfer into bankruptcy
|
|
|
bankruptcy order
|
debtor forced to transfer into bankruptcy
|
|
|
trustee in bankruptcy
|
licensed private professional who assists debtor in bankruptcy process
|
|
|
voluntary assignment in bankruptcy
|
an assignment of assets to a trustee in bankruptcy for the benefit of creditors, made voluntarily by a debtor
|
|
|
division I proposal
|
usually commercial debtor in form of corporation or debtors with claims of greater than $75,000 against them
|
|
|
proof of claim
|
document filed with trustee in bankruptcy establishing validity of creditor's claim
|
|
|
preferred creditors
|
creditors who, by legislation, must be paid before other unsecured creditors
|
|
|
settlement
|
transfer of assets for nominal or no consideration
|
|
|
receivership
|
proceeding in which a receiver is appointed for an insolvent corporation, partnership, or individual to take possession of its assets for ultimate sale and distribution to the creditors
|
|
|
indemnity
|
primary obligation. written commitment which third party agrees to share responsibility for paying debt of another, regardless if debtor defaults or not
|
