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

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R - S


Real Property:
Immovable property such as a building and land.

Realization:
The amount of money received from the sale of assets.

Receiver:
A person or corporation appointed by a person who holds a debenture or other security agreement, giving that person authority to take possession of the specified in the debenture.  A Receiver cannot manage or operate a company for more than 14 days.

Receiver's Certificate:
Certificates given by a Receiver or Receiver-Manager to secure borrowings required by the Receiver or Receiver-Manager.  Any debt secured by a Receiver's Certificate has a first charged over the property, ranking ahead of any other secured charge.

Receiver-Manager:
Similar to Receiver above, except the Receiver-Manager can manage or operate the company.

Receiver of Rents:
A person appointed by the Court to enforce the collection of rent as is specified in the charge on the property.

Receiving Order:
An Order handed down by the Court following the successful petition to have a person or company placed into bankruptcy.

Redemption:
Buying back.

Registrar:
An Officer of the Supreme Court appointed by the Chief Justice and empowered to deal with various matters as set out in the Bankruptcy and Insolvency Act.

Repairer's Lien:
A mechanic or other person who, by bestowing money, skills or material on any chattel, is entitled to a lien on the chattel, which empowers that person to sell the chattel if he is not paid within 90 days.

Respondent:
The party who responds to a claim filed in Court against him by a Plaintiff or the person who is being sued.  Another term for the Respondent is the Defendant.

Retainer:
Under the Bankruptcy and Insolvency Act it is common for the Trustee in Bankruptcy to ask for a retainer before he accepts an appointment.  There is also a special type of retainer called a Third Party Retainer, whereby funds are put up that secure the fees and disbursements of the Trustee but are returned to the party putting up the funds if the Trustee realizes enough out of the estate to cover the fees and costs and, in the case of a proposal, returned to the party putting up the funds if the proposal is refused by the creditors or not approved by the Court.

Secured:
The status a creditor has when he has security or a right in some property that he can sell or realize on.

Security:
Something given or pledged to a person who is lending money in order to secure or guarantee payment of that debt.

Seize or Sue:
That phrase referring to a concept that, in British Columbia under the Personal Property Security Act, allows a secured creditor, in regard to consumer goods, to either seize or sue for the goods but not do both.  For example, a financial institution holding security over a vehicle that is used for personal use and not for business can on default either seize that vehicle and sell it in satisfaction of its debt or sue the person for what is owed, but cannot do both.

Settlement:
The transferring of property to another person or a gift.  Under certain circumstances, settlements are void against the Trustee and are brought back into the bankruptcy estate.

Sine Die: (Latin)
Adjourned without giving any future date of meeting or hearing.

Small Claims/Small Claims Court:
A Court which has simplified rules, thus encouraging non-lawyers to attend at the Court without legal representation.  In British Columbia, the amount that can be considered in a small claims action is $10,000 or less:

Special Resolution:
A term under the Bankruptcy and Insolvency Act whereby voting is carried out, for example when creditors accept or refuse a proposal.  In order for the Special Resolution to pass, of those creditors who vote there must be in excess of 2/3 of the dollars voting in favor and a simple majority in number of the creditors voting in favor.

Specific Charge:
A lien or security interest in a specific piece of property that can be distinguished from other pieces of property.  For example, security over a vehicle.

Statement of Affairs:
The listing of a debtor's assets and liabilities and sworn under oath by the debtor before a lawyer or Commissioner for Taking Oaths.

Statement of Receipts and Disbursements:
A statement prepared in the matter of receivership or agency appointment or a bankruptcy appointment, whereby the realizations and disbursements are set out.

Status Quo:
The current state of affairs, or current position.

Stay of Proceedings:
The stopping or preventing of legal actions undertaken.  In the Bankruptcy and Insolvency Act, there is a stay of proceedings in the case of a bankruptcy or in the case of a proposal.  This stops all legal actions against the company or person.

Subrogation:
The legal right that a person or corporation has when he pays someone's debt to recover that money from the debtor.

Summary Administration:
Under the Bankruptcy and Insolvency Act a summary administration bankruptcy is a consumer bankruptcy defined as a bankruptcy where the free and clear assets are less than $10,000.  Summary administration bankruptcies have stream lined procedures, making them less costly to administer.

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