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Glossary

A B C D E H I L M O P R S U W

Partnership

A partnership is an association of two or more persons to carry on a business for profit.

Payment Default

The failure of the buyer to meet their contractual payment obligations.

Payment Moratorium

A delay or suspension of payments, usually by a government, to the creditors.

Plaintiff

A person who brings a court action or lawsuit against another. In the case of commercial credit, the person or concern who takes another concern and/or person to court for non-payment of moneys alleged due.

Policy

The insurance contract entered between the insurer and the policyholder. The contract together with the Proposal, Schedules, Endorsements and any other documents issued under that contract constitute the Policy.

Policyholder

Also known as Insured. The party that purchases the insurance policy and assumes rights and obligations under the policy.

Preferential Debts

Preferential debts are local rates, income tax or other assessed tax, purchase tax, wages or salary, holiday pay and severance pay, national health insurance, etc. which, under the bankruptcy legislation of the country of the buyer, constitute a priority charge on the insolvent company's assets. Preferential debts rank after secured debts with a fixed charge and costs of liquidation but before any debts under a floating charge and unsecured trade debts.

Proof of Claims / Debt

When a company becomes insolvent, the creditors are required to register details of the amount owing to them with the liquidator or trustee. Normally the registration must be done within a specified period of time and/or with the support of an affidavit.