subsidy (s[schwa]b-s[schwa]-dee), n. 1. A grant, usu. made by the government, to any enterprise whose promotion is considered to be in the public interest. • Although governments sometimes make direct payments (such as cash grants), subsidies are usu. indirect. They may take the form of research-and-development support, tax breaks, provision of raw materials at below-market […]
absolute-priority rule. Bankruptcy. The rule that a confirmable reorganization plan must provide for full payment to a class of dissenting unsecured creditors before a junior class of claimants will be allowed to receive or retain anything under the plan. • Some jurisdictions recognize an exception to this rule when a junior class member, usu. a
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An agreement to exchange interest receipts or interest-payment obligations, usu. to adjust one’s risk exposure, to speculate on interest-rate changes, or to convert an instrument or obligation from a fixed to a floating rate — or from a floating to a fixed rate. • The parties to such an agreement are termed “counterparties.”
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hypothec (hI-poth-ek or hi-).Civil law. A mortgage given to a creditor on property to secure a debt; HYPOTHECA. landlord’s hypothec. Scots law. The lessor’s right of security for rent in articles, furniture, and equipment (other than tools of the tenant’s trade) that the tenant brought onto the leased premises. • Unlike the English remedy of
A lease that is collateral for the loan through which the lessor acquired the leased asset, and that provides the lender’s only recourse for nonpayment of the debt; a lease in which a creditor provides nonrecourse financing to the lessor (who has substantial leverage in the property) and in which the lessor’s net investment in
protest certificate. A notarial certificate declaring (1) that a holder in due course has recruited the notary public to present a previously refused or dishonored negotiable instrument, (2) that the notary has presented the instrument to the person responsible for payment or acceptance (the drawee), (3) that the instrument was presented at a given time
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delivered ex ship. A mercantile-contract term allocating the rights and duties of the buyer and the seller of goods with respect to delivery, payment, and risk of loss, whereby the seller must clear the goods for export and bear the costs of transportation (apart from unloading charges and import duties) to the importing nation’s port
An intentional breach of contract and payment of damages by a party who would incur greater economic loss by performing under the contract. See EFFICIENT-BREACH THEORY.
A dividend that grows from year to year when not paid. • A cumulative dividend is usu. on preferred shares, and it must be paid in full before common shareholders may receive any dividend. If the corporation does not pay a dividend in a particular year or period, it is carried over to the next
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mahr, n. Islamic law. A gift of money or property that must be made by a man to the woman he marries. • The parties agree to the mahr’s amount and time of payment before marrying. If the time of payment is indefinite or if the mahr’s outstanding balance is not paid sooner, the agreed