A negotiable instrument, sometimes called an instrument, is any financial document that directs payment to its holder or a named party. More specifically, a negotiable instrument must be written, signed by the maker, include an unconditional...
financial services
negotiable instruments
Negotiable instruments are mainly governed by state statutory law. Every state has adopted Article 3 of the Uniform Commercial Code (UCC), with some modifications, as the law governing negotiable instruments. The UCC defines a negotiable...
nonrecourse
Nonrecourse refers to a type of debt where the creditor may only look to the collateral to satisfy the unpaid loan, and not the debtor’s personal assets (as with a recourse loan). For example, the Seventh Circuit in Racine v. Commissioner...
nuisance fees
Nuisance fees are charges used by companies to penalize certain behaviors, usually through setting fees that are disproportionate to the actual cost associated with the service. Common examples of nuisance fees include late payment,...
partially secured debt
A partially secured debt is a form of secured debt in which debt is backed by collateral with a value lesser than that of the full debt owed. Also known as undersecured debt. Such a debt can be illustrated, for example, with a home valued at...
pawn
A pawn is a pledge of personal property to a pawnbroker as collateral for a loan. If the borrower repays the loan within a specified amount of time, the borrower may redeem the item, but if the borrower does not repay the loan within a...
pawnbroker
A person who lends money for interest and receives personal property from the borrower as collateral. If the borrower does not repay the loan within a specified amount of time, the pawnbroker has a right to sell the goods deposited to them...
predatory lending
Predatory lending is any lending practice where the borrower is taken advantage of by the lender. Predatory lenders impose lending terms that are unfair or abusive. This predatory practice is often committed against victims who are elderly or...
prepayment penalty
A prepayment penalty clause is common in mortgage contracts, and it specifies that if the borrower pays down or pays off the mortgage early, usually within the first five years of the loan, a penalty will be levied. The prepayment penalty...
principal
In general, a principal is a person or thing that is more important than others when identified for a particular purpose. The term also has specific meanings in various fields of law.
In criminal law, principal refers to a...