In finance, a bid refers to the price or yield at which a buyer indicates they are willing to purchase a financial obligation. It can also signify an offer by one company to purchase the share capital of another.
A deficiency judgment is a court order stating that a borrower still owes money on a loan when the security or collateral does not fully satisfy the defaulted debt.
In finance, a floor refers to the minimum interest rate set by the lender on a loan or other obligation. This ensures that the interest rate will not fall below a certain level, which provides a safety net for lenders' returns. It contrasts with a cap, which sets an upper limit on the interest rate.
A general lien is a legal claim on all the property owned by the debtor, as opposed to a specific property lien, which targets particular assets.
A liability is an obligation that a company needs to settle in the future, generally in the form of economic benefits such as money. Liabilities often result from past transactions and play a crucial role in a company's financial health by representing what it owes.
Payment refers to the satisfaction of a claim or debt usually through the delivery of money in fulfillment of an obligation.
The principal sum refers to the core amount of a debt or financial obligation. In finance, it is the initial amount of money borrowed without interest. In insurance, it designates the amount specified to be paid to the beneficiary under the policy, such as the death benefit.
An unconditional offer to pay or perform in full an obligation to another, together with actual presentation of the thing or sum owed, or some clear manifestation of ability to pay or perform.
