|Fair Market Value:
value of a piece of property, given a willing purchaser and a willing vendor,
and a reasonable amount of time for the property to be exposed to sale.
Title to ownership
without restriction or limitation. For example ownership of land
in fee simple means the land is owned out right as compared to a person
who leased land.
to be synonymous with the word Trustee. A fiduciary holds certain
rights which he or she must exercise for the benefit of the beneficiary.
The meeting called
by the Trustee in Bankruptcy to consider the affairs of the bankrupt or
a debtor under a proposal. NOTE: Under the Bankruptcy and Insolvency
Act, as amended on September 30, 1997, there is not a meeting of creditors
required for simple personal bankruptcy cases, unless the Superintendent
of Bankruptcy or creditors holding 25% of the proven claims request one.
Those assets that
are attached to or are part of a building, or are fixed to land.
A type of security
interest that charges the debtor's property but does not specify particular
assets or pieces of equipment until the security interest or instrument
That action that
a lender will take to repossess and sell a piece of property for defaults
in mortgage payments.
Under the Bankruptcy
and Insolvency Act, this is the preferring by a debtor of one or more creditors
over others by the payment to those creditors of some extraordinary amounts
Under the Bankruptcy
and Insolvency Act, the Trustee can, under certain circumstances, set aside
fraudulent preferences up to three months prior to the date of bankruptcy
in the case of arm's length parties and one year in the case of non-arm's
Goods which are
comprised of many identical parts. For example, a bushel of grain,
a barrel of apples or oil, which can be easily replaced by other identical
goods. One of the tests of whether items are fungible or not is whether
they can be sold by weight or number.
The seizure of property,
monies, earnings, receivables belonging to a debtor that are in the hands
of a third party.
That value attributed
to a business that is not tangible, but arises from the reputation, expertise,
service or some other intangible that attaches to the business and makes
it have more worth than just the value of its assets.
A person who pledges
collateral for the contract of another or who guarantees to pay a certain
debt of a debtor if the debtor defaults..
To mortgage or pledge
without delivery of title or possession. To place or leave an item of property
in the custody of another.
A right or a title
in property that cannot be made void or cancelled by any past event, error
or omission in the title.
The act of one party
protecting or guaranteeing protection, or freedom from liability, of a
third party for actions of that party.
A person not able
to pay debts generally as they become due.
A person who is
not bankrupt and who resides, carries on business or has property in Canada,
whose liabilities to creditors provable as claims amount to $1,000.
A temporary Court
Order intended to be of limited duration, usually until the Court has had
an opportunity of hearing the full case and the opportunity of making a
A person appointed
by the Court to be a watchdog regarding the assets of a debtor during that
time between the application to the Court for a Receiving Order and the
time where the Receiving Order is handed down. An Interim Receiver
may also be appointed where a secured creditor is about to send out, or
has sent out, a Notice of Demand under the Bankruptcy and Insolvency Act
of its intention to enforce its security, or the debtor has filed a Notice
of Intention to Make a Proposal or has filed a proposal.
A dividend paid
to creditors before the estate is finalized.
The placing of funds
in the Courts by a person when there are two or more competing claims for
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