INSOLVENCY DICTIONARY
(Canadian Insolvency Terms - updated to August, 2000)

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Absolute:
Complete and without conditions.  For example, a bankrupt, usually after nine months receives an Absolute Order of Discharge, which means all of his debts, with certain exceptions, are wiped out.

Acceleration Clause:
Any clause in a contract which spells out that when certain actions are taken, the clause comes into effect.  A common acceleration clause is the clause in a lease that says if a company goes into bankruptcy, three months rent is due as a preferred claim.

Acceptance:
The act of accepting something, usually a contract.  For example, an offer is made to some person that that person buys certain goods for a certain amount of money.  If the person to whom the offer is made agrees, then the offer is considered to be accepted.

Accessions:
Goods that are installed in or affixed to other goods.

Act:
A bill which has passed through the various legislative steps and, hence, has become law.

Action:
A proceeding in a Court of law where one person seeks a Court Order for the enforcement of that person's or company's rights.

Adjournment:
The delay or postponement usually to another time of a meeting or action.

Adjustment Date:
The date on which parties agree that certain financial adjustments will be made to a contract.  For example, on the sale of property, there is an adjustment date set which is the time for the costs, such as property taxes, water, etc., to be apportioned between the purchaser and the vendor.

Administrator:
A Trustee or person appointed or designated by the Superintendent of Bankruptcy to administer consumer proposals.

Affidavit:
A statement by a person in which the person states that to the best of his or her knowledge, the facts in question are true.  An affidavit is sworn before a Notary, Commissioner for Taking Oaths, lawyer or some other judicial officer who can administer oaths.

After Acquired Property:
Property of a bankrupt acquired between the date of bankruptcy and prior to the bankrupt's discharge from bankruptcy.

Agent:
A person who has received, usually by appointment, the power to act on behalf of another.

Agent - Section 427 of the Bank Act:
A person, usually a Trustee in Bankruptcy, appointed by a bank to realize on its security as defined under Section 427 of the Bank Act.  The security covered is inventory.

Alimony:
An amount given to one spouse by another while they are separated or divorced.

Annulment:
To make void or to cancel. Appeal:
To ask a more senior Court or person to review a decision of a subordinate Court or person.

Appearance:
The act of showing up in Court as either plaintiff, defendant, accused, or any other party to a Court
action.

Application:
The act of making a request usually of the Court, for example, an application to have a bankrupt discharged.

Appointment:
The act of designating, or the acquisition of some, responsibility or position.  For example, the Court can appoint a Trustee in Bankruptcy as Receiver of some property.

Arbitration:
A dispute resolution mechanism, whereby an independent neutral third party is appointed to hear and consider the merits of the dispute, and who renders a final and binding decision called an award.

Arm's Length:
The act of dealing with a person who is not a relative but an independent third party.

Arrears:
The amount of money by which a contract or obligation is in default.

Assessment:
The valuing of a thing or property

Asset:
A thing, chattel, resource or item or piece of property owned or controlled by a person or company.

Assign:
To give or to transfer responsibility to another.

Assignment of Book Accounts:
The assigning by a company or business to a lender, usually a bank, the interest that the person or company has in accounts receivables.

Assignment into Bankruptcy:
The act of a person who places himself or his company into bankruptcy pursuant to the Bankruptcy and Insolvency Act.

Bailiff:
A person who, in British Columbia, is appointed under the Debt Collection Act who will act or assist any other person to repossess, cease or distrain pursuant to conditions set out in various Acts.

Bankrupt:
A person who has made an assignment or against whom a receiving order has been made, or the legal status of that person.

Bankruptcy:
The state of being bankrupt.

Beneficiary:
The person who is in receipt, or will be in receipt, of some asset, thing, or thing of value.  For example, a person can make a will naming someone, usually their spouse, as beneficiary of their estate.

Bill of Exchange:
A legal document, such as a cheque, where one person in writing specifies that a third party will pay a person a specific sum of money at a specific time, or upon demand.

Bill of Lading:
A document received by a transportation company acknowledging that it has received certain goods and, for the purpose of transportation, serves as title to that property.

Bill of Sale:
An agreement in writing signifying that one person for a specific sum of money has acquired specific assets.

Book Debts:
Accounts receivables owned by a company.

Builder's Lien:
The action that a supplier of goods or services, in respect of construction, can take by filing an entitlement against that property for monies he is owed.  Refer to the Builder's Lien Act.

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