1031 exchange (also called a tax-deferred exchange) refers to the ability of investors and organizations to replace one investment for a similar one instead of keeping the proceeds. For certain transactions, the exchange allows the investor...
finance
341 meeting
A 341 meeting is a mandatory meeting held at the beginning of a bankruptcy proceeding. Also referred to as the creditors meeting, its name comes from section 341 of the Bankruptcy Code. The purpose of a 341 meeting is to examine the debtor’s...
A/R
A/R is the abbreviation for accounts receivable.
[Last updated in June of 2022 by the Wex Definitions Team]
absolute-bar rule
The absolute bar rule prohibits a creditor who disposes of collateral in a commercially unreasonable manner from obtaining a deficiency judgment.
For example:
§ 9-610 of the Uniform Commercial Code (UCC) codifies the...abuse
Abuse is an action that intentionally causes harm or injures another person. This can refer to physical abuse, psychological abuse, mental abuse, or child abuse (see below).
Abuse is also to misuse something - e.g., abuse...
accelerated depreciation
Accelerated depreciation is any method of depreciation where the business depreciates a greater proportion of an asset’s value earlier in its life. A common accelerated depreciation method is MACRS. Compare with straight-line depreciation...
acceleration
Acceleration means the advancing of a loan agreement's maturity date so that payment of the entire debt is due immediately. In Analytical Surveys Inc. v. Tonga Partners, L.P., United States Court of Appeals, Second Circuit stated that “‘...
acceleration clause
An accelerated clause is a term in a loan agreement that requires the borrower to pay off the loan immediately under certain conditions. An accelerated clause is typically invoked when the borrower materially breaches the loan agreement....
account
An account, within the context of secured transactions, is defined under Article 9 of the Uniform Commercial Code, as a right to payment of a monetary obligation. Not included: (1) letters of credit, (2) commercial tort claims, (3) deposit...
account debtor
An account debtor is someone who owes an obligation by virtue of an account, chattel paper, or general intangible.
See, e.g. Nickey Gregory Co., LLC v. AgriCap, LLC, 597 F.3d 591 (4th Cir. 2010).
[Last updated in...