Flashcards in Module 8: Debtor and Creditor Law Deck (55)
Loading flashcards...
1
money laundering
the false reporting of income from criminal activity as income from legitimate business
2
account agreement
a contract that specifies the rights and obligations of a bank and its customer
3
overdraft
when money is withdrawn from a bank account with the result that the balance in the account goes below zero
4
negotiable instrument
a signed doc containing an unconditional promise or order to pay a specific sum on demand or on a specified date to a specific person
5
promissory note
a written promise to pay another person a specific amount on demand or on a specific date
6
bill of exchange
a written order by one person (the drawer) to a 3rd person (the drawee) to pay money to another person (The payee)
7
holder
a person who has possession of a negotiable instrument i.e. cheque
8
holder in due course
a holder in good faith without notice of defects, who acquires greater rights than the parties who dealt directly w each other as the drawer and payee
9
consumer note
a negotiable instrument signed by a consumer to buy goods or services on credit
10
bank draft
a cheque written by a bannk on the request (and payment) of its customers
11
certified cheque
a cheque on which the drawee bank has guaranteed payment
12
stop payment
when the drawer of a cheque orders its bank not to pay the holder who presents the cheque for payment
13
endorsement in blank
signing a cheque without any special instructions
14
restrictive endorsement
signing a cheque for deposit only to a bank account
15
special endorsement
signing a cheque and making it payable to a specific person
16
personal defence
a defence that affects the parties themselves rather than the instrument
17
real defence
a defence based no the instrument being fundamentally flawed
18
secured credit
a debt where the creditor has an interest in the debtor's property to secure payment
19
unsecured credit
a debt where the creditor has only a contractual right to be repaid i.e. usually trade credit
20
letter of credit
a written promise by a buyer's bank to a seller's bank to pay the seller when specified conditions are met
21
events of default
failure by the debtor to make required payments on a loan or to fulfill its other obligations under the credit agreement
22
collateral
property in which a creditor takes an interest as security for a borrower's promise to repay a loan
23
covenants
provisions found in credit agreements which require debtors to carry on business in accordance w specific requirements (basically, conditions)
24
letter of commitment
a document that is provided by a lender to a borrower and sets out the terms of a loan
25
general security agreement
a security agreement that includes all of the debtor's personal property assets as collateral
26
After-acquired property
collateral that includes personal property acquired by the debtor during the term of the loan
27
security interest
an interest in personal property that is intended to secure payment or performance of an obligation (usually a debt)
28
registration
the registration of a financing statement to record a security interest
29
financing statement
the doc registered as evidence of a security interest
30