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

Case Law:
That body of Court decisions that act as precedents in the interpretation of various Acts.  In some cases, the rule is not in statute books but can be found as a principle of law established by a judge in some recorded case.

Caveat:
A formal warning.  Beware!

CCAA - Companies' Creditors Arrangement Act:
An Act under which proposals or arrangements or compromising of debt is structured.  For a company to be eligible to file under the CCAA, it must have at least $5 million in debt.

Charge:
An encumbrance, lien or financial obligation that is attached to some property.  For example, a person who files a lien against a piece of property might say that he has a charge against that property.

Chattel:
Assets that are movable and not attached to land or real property.

Chattel Mortgage:
An interest that is given by one person in, say, a piece of property such as a piano to another person to secure a debt.

Chose In Action:
The right of property in intangible things which are not in one's possession, but that are forcible through legal or Court action, such as debts, insurance claims, shares in a company, pensions and salaries.

Claim Provable In Bankruptcy:
Any claim or liability that is provable in a proceeding under the Bankruptcy and Insolvency Act.

Clearance Certificate:
A certificate issued by a statutory body signifying that they are not owed any money in regards to a certain file or company.

Collateral:
Property that has been given or committed in order to guarantee a loan.

Completion Date:
That date on which the transfer of title is to be made.

Condition Precedent:
A contractual condition that is required to be met before a contract can be completed.

Consideration:
Under common-law, one of the three criteria that have to be met before a contract is binding.  Refers to money or payment of money.

Consign:
To hand over or give poccession of an asset to someone.

Consumer Debtor:
A natural person who is bankrupt or insolvent and whose aggregate debts, excluding any debts secured by the person's principle residence, do not exceed $75,000 or such other maximum as is prescribed.

Consumer Goods:
This is the definition under the Personal Property Security Act, meaning goods that are used or acquired for use primarily for personal, family or household purposes.

Contingency Fee:
That fee which a person, often a lawyer, is entitled to per agreement upon the successful completion of some action.  For example, a lawyer can take on an action for, say, 25% of the proceeds which he would only be entitled to if the action is successful.

Contra:
The setting off of mutual debt.  For example, if a company owes $100 to another company that is owed $30 by that company in turn, the company is allowed to set off the $30 against the $100 and make a net payment of $70.

Contract:
An agreement between parties, where each party has obligations.  In order to be valid, a contract requires an offer, an acceptance of that offer and, in common-law jurisdictions, consideration.

Conveyance:
That act which transfers property from one person to another.

Creditor:
That person who has a claim, preferred, secured or unsecured, provable under the Bankruptcy and Insolvency Act.

Crystallization:
That point in time where a contract or agreement triggers certain clauses in that contract.  For example, when a bank appoints an Agent pursuant to its General Security Agreement, all the assets of the company in question, that are not secured by other creditors, are captured by that General
Security Agreement.

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