General Welfare Clause. U.S. Const. art. I, § 8, cl. 1, which empowers Congress to levy taxes and pay debts in order to provide for the country’s general welfare. • The Supreme Court has broadly interpreted this clause to allow Congress to create, for example, the social-security system. — Also termed Welfare Clause. [Cases: United […]
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Goods that are normally used in more than one jurisdiction (such as shipping containers and road-construction machinery) and that are held by the debtor as equipment or leased by the debtor to others. • Under previous drafts of the Uniform Commercial Code, the procedure for perfecting a security interest in mobile goods was generally defined
nova debita (noh-v[schwa] deb-i-t[schwa]). [Latin] Scots law. New debts, as distinguished from preexisting ones. “A security granted by a debtor within sixty days of his bankruptcy for a debt contracted before that period is reducible as a fraudulent preference. But security or payment granted in consideration of a novum debitum — a debt presently contracted
equity of subrogation. The right of a person who is secondarily liable on a debt, and who pays the debt, to personally enforce any right that the original creditor could have pursued against the debtor, including the right to foreclose on any security held by the creditor and any right that the creditor may have
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adjudication ([schwa]-joo-di-kay-sh[schwa]n), n. 1. The legal process of resolving a dispute; the process of judicially deciding a case. 2. JUDGMENT. former adjudication. See FORMER ADJUDICATION. 3. Scots law. The Court of Session’s transfer of heritable property to a creditor as security for or in satisfaction of a debt, or its vesting title in an entitled
hypothecate (hI-poth-[schwa]-kayt), vb. To pledge (property) as security or collateral for a debt, without delivery of title or possession.
de mercatoribus (dee m[schwa]r-k[schwa]-tor-[schwa]-b[schwa]s), n. [Latin “of merchants”] Hist. The title of two statutes enacted in the 11th and 13th years of the reign of Edward I, providing that the land of a business debtor could be held by a creditor as security until the debt was paid. “But by the statute de mercatoribus… the
A transfer of a real-property interest that is less than a freehold. • The term includes debt-security interests in land.
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Scots law. A possessor’s right to keep all property owned by a debtor as security for the debt.
foreclose, vb. To terminate a mortgagor’s interest in property; to subject (property) to foreclosure proceedings. [Cases: Mortgages 320. C.J.S. Mortgages §§ 490–491, 495, 559, 568.] “Should the mortgagor default in his obligations under the mortgage, the mortgagee will seek to ‘foreclose’, — i.e., ‘end’ or ‘close’ the mortgagor’s rights in the security. After taking the