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Business Law > Chapter 15 > Flashcards

Chapter 15 Flashcards

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1
Q

Accounts receivable

A

Funds owed to a business for goods or services provided to customers

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2
Q

Assignment in bankruptcy

A

The voluntary transfer of a debtor’s assets to a trustee in bankruptcy so that they can be administered for the benefit of the creditors; also known as voluntary assignment in bankruptcy

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3
Q

Attachment

A

Under the personal Property Security Act, the situation in which value has been given pursuant to the contract, giving the creditor a claim against the assets used as security if there is a default by the debtor

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4
Q

Bankrupt

A

A person who has made an assignment in bankruptcy or been forced into bankruptcy through a court order and who has not been discharged from bankruptcy

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5
Q

Bankruptcy

A

The process by which an insolvent person voluntarily or involuntarily transfers assets to a trustee for distribution to creditors

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6
Q

Bankruptcy order

A

A statutory assignment of a debtor’s assets to a trustee in bankruptcy

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7
Q

Bill of sale

A

A written agreement that conveys title from seller to buyer

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8
Q

Bona fixe purchaser for value

A

An innocent third party who has paid a fair price for goods under claim by a creditor

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9
Q

Book accounts

A

Accounts receivable that can be used as security for a loan

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10
Q

Chattel mortgage

A

A loan for which a creditor provides credit to the debtor, securing the loan by taking title of a good such as a car

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11
Q

Chattels

A

Tangible, movable personal property that can be measured and weighted; also known as goods

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12
Q

Chose in action

A

The thing or benefit that is transferred in an assignment; intangible personal property, such as a claim or the right to sue

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13
Q

Collateral

A

Goods or property used to secure a debt

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14
Q

Conditional sale

A

A sale in which the seller provides credit to the purchaser, holding title until the goods are paid for

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15
Q

Confirmed letter of credit

A

A document, ratified by the lender, that secures or guarantees the financial aspects of a trade transaction

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16
Q

Consolidation order

A

A court order issued under the Orderly Payment of Debts program that sets out amounts to be paid into court by the debtor (and the time of each payment) for the benefit of each of the creditors subject to the order

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17
Q

Consumer debtor

A

An individual who is bankrupt or insolvent, with less than $250,00 in claims against them (excluding a mortgage on their home)

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18
Q

Consumer proposal

A

An alternative to bankruptcy, created by the Bankruptcy and Insolvency act, whereby a consumer debtor secures some time to reorganize their affairs and make a proposal for partial payment that will satisfy their creditors; Division 2 proposal

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19
Q

Continuing guarantee

A

A provision in a guarantee allowing the creditor to advance further funds without affecting the obligation of the guarantor to pay in the event of default

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20
Q

Division 1 proposal

A

An alternative to bankruptcy whereby the debtor secures some time to reorganize their affairs and make a proposal for partial payment that will satisfy their creditors, if the proposal is rejected, the debtor is deemed to have made an assignment in bankruptcy from the day of the meeting with the creditors, and normal bankruptcy proceedings occur

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21
Q

Division 2 proposal

A

Same as consumer proposal

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22
Q

Estate

A

All the property the owner has power to dispose of, less any related debt; also the property of a bankrupt given to the trustee in bankruptcy

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23
Q

Fixture

A

A thing attached to land or to a another fixture attached land

24
Q

Floating charge

A

a security not fixed on any particular assets until default or some other specified event

25
Q

Fraudulent preference

A

A debtor’s payment of money to one creditor to give that creditor preference over the other creditors

26
Q

Fraudulent transfer

A

A debtor’s transfer of property in an attempt to keep it out of the hands of creditors; not a valid sale at a fair price to an innocent third party

27
Q

Guarantee

A

A written commitment whereby a guarantor agrees to pay a debt if the debtor does not

28
Q

Guarantor

A

A person assuming obligation to pay if the debtor does

29
Q

Holdback

A

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

30
Q

Indemnity

A

A primary obligation of a third party to pay a debt along with the debtor

31
Q

Insolvency

A

Inability of a person to pay their debts as they become due

32
Q

Lease

A

A secured arrangements whereby possession of the goods goes to the lessee, while the title to the goods remains with lessor

33
Q

Lease to purchase

A

A lease in which title to the goods is transferred to the lessee at the end of the lease period

34
Q

Letter of credit

A

A commitment by the importer’s bank that the price stated will be paid upon presentation of documentation confirming delivery

35
Q

Mortgage

A

A means of securing loans; title of property is held by the moneylender as security in some jurisdictions, in other jurisdictions, a mortgage is simply a charge against title

36
Q

Official receiver

A

An officer of the court, appointed by the Superintendent of Bankruptcy for each bankruptcy district

37
Q

Operating lease

A

A lease in which the goods are returned to the lessor at the end of the lease period

38
Q

Perfection

A

Protection of a secured creditor’s claim, either by registering the secured obligation or by taking possession of the collateral

39
Q

Personal property

A

Tangible, movable goods (chattels) and intangible claims (choses in action)

40
Q

Pledge

A

An item that a creditor (like a pawnbroker) takes possession of a security and holds until repayment

41
Q

Preferred creditors

A

Creditors who by law must be paid before other unsecured creditors

42
Q

Priority

A

When there are two or more creditors, the one entitled to be paid first has priority

43
Q

Proof of claim

A

A document filed with the trustee in bankruptcy establishing the validity of a creditors claim

44
Q

Purchase money security interest

A

A security interest on specific goods that has priority over a general security agreement provided it is registered within a specific time

45
Q

Real property

A

Land, buildings attached to the land, and items called fixtures (items attached to the land or the building or to another fixture attached to the land)

46
Q

Receivership

A

A proceeding in which a receiver is appointed for an insolvent corporation, partnership, or individual to take possession of assets for its ultimate sale and distribution to creditors

47
Q

Right to redeem

A

After a creditor has taken possession of collateral, the right of the debtor to reclaim it on payment of any money owing

48
Q

Secured creditor

A

A creditor who has a claim on the property of the debtor, giving them priority on that property over other creditors

49
Q

Secured transaction

A

A collateral right to debt giving the creditor the right to take back the goods or intercept the debt owing used as security in the event of default

50
Q

Settlement

A

Transfer of assets where nominal or no consideration is involved

51
Q

Standby letter of credit

A

A commitment by the importer’s bank that the price stated will be paid upon presentation of document confirming delivery, used as a guarantee

52
Q

Superintendent of Bankrupty

A

The government official appointed by the federal government who is responsible for the administration of bankruptcy across Canada

53
Q

Surplus income

A

Amount a bankrupt’s income exceeds what is necessary to maintain a reasonable standard of living according to the standards set by the Office of Superintendent of Bankruptcy

54
Q

Trustee in bankruptcy

A

The licensed professional appointed to administer the estate of a bankrupt for the benefit of the creditors

55
Q

Voluntary assignment in bankruptcy

A

The voluntary transfer of a debtor’s assets to a trustee in bankruptcy so that they can be administered for the benefit of the creditors; assignment in bankruptcy

Business Law (16 decks)

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