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

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Joint and Several Liability:
The liability of more than one person for which each person may be sued for the entire amount of the damages.

Joint Tenancy:
The situation where two or more persons are equally owners of some property.

Judgement:
A formal decision, sentence or Order of a Court of Justice.

Leasehold Improvements:
Those assets which are attached to a building and cannot be removed from any property being leased.

Levy:
Under the Bankruptcy and Insolvency Act the government has imposed a levy (in 1997 equal to 5%) over all dividends paid to unsecured creditors.  Therefore, if a creditor is entitled to a $100 dividend, he will only get $95 with $5 being paid to the government.

Liability:
Any legal obligation for which a person is responsible.

Lis Pendens:
A dispute which is the subject of ongoing or pending litigation.  Oftentimes, a lis pendens can be filed at the Land Registry Office against real property to denote to third parties that another party may have an interest in the property.

Litigation:
A dispute that results in formal Court action or a law suit.

Maintenance:
The obligation that one person has to contribute in part or in whole to the cost of living of another person.

Mediation:
An alternate dispute mechanism whereby the mediator acts as a facilitator assisting the parties in coming to a mutually agreed settlement.  Under the Bankruptcy and Insolvency Act, mediation can be used, for example, if a creditor or the Trustee opposes a bankrupt's discharge.

Mortgage:
An interest given on real property to guarantee the payment of a debt or execution of some action.

Mutatis Mutandis:
Latin - with appropriate changes as applicable.  For example, in proposals all other sections of the Bankruptcy and Insolvency Act, over and above the section on proposals, applies to proposals, mutatis mutandis.

Notice of Disclaimer - Lease:
In a proposal, the company may disclaim a lease or, in other words, state that it does not require that lease and is cancelling it.  The proposal must indicate one of the options that is given to the landlord for him to file a claim as follows actual losses resulting from the disclaimer or the lesser of
  (i) three years rent, or
  (ii) the aggregate of the rent provided for in the lease for the first year of the lease following the date on which the disclaimer becomes effective and 15% of the rent for the remainder of the term of the lease after that year.

Nulla Bona:
Unable to locate assets.

Oath:
A solid affirmation to tell the truth, oftentimes sworn in front of a Notary or Commissioner for Taking Oaths.

Official Receiver:
A person deemed to be an officer of the Court who reports to the Superintendent of Bankruptcy and performs duties as specified by the Bankruptcy and Insolvency Act.

Orderly Payment of Debts:
A scheme governed by Provincial Court to allow a debtor to pay his debts in accordance with the sections under Part X of the Bankruptcy and Insolvency Act.

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