• Lender of money.


Follow this link for all the terms related to credit.

 Referenced Terms
 Composition arrangement: Is an agreement with Creditors to avoid bankruptcy that involves a pro rata cash settlement of creditor claims by the debtor firm; a uniform percentage of each dollar owed is paid to each creditor.

 Debenture bond: An unsecured bond whose holder has the claim of a general Creditor on all assets of the issuer not pledged specifically to secure other debt. Compare subordinated debenture bond, and collateral trust bonds.

 Hypothetication agreements: Are legal documents which define the pledging of collateral. A mortgage defines the collateral for a real estate loan or Note and a securities hypothecation agreement permits margin accounts and futures accounts by stating what is being pledged to cover positions, debit balances, or even deficit balances. Generally, this document allows the owner to enjoy the usage of the property provided that no default occurs. In the event of a default the property can go to the Creditor to satisfy the claim. The residual value, if any, would then go to the owner.

 Involuntary reorganization: A petition initiated by an outside party, usually a Creditor, for the reorganization and payment of creditors of a failed firm.

 Joint tenants by the entirety: Is a method of joint ownership. It is allowed for married couples only. There are issues relating to assets and liabilities. This form of ownership may offer some protection for the innocent spouse against Creditor claims.

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