banking

Account Debtor

Definition

Someone who owes an obligation by virtue of an account, chattel paper, or general intangible.

Illustrative caselaw

See, e.g. Nickey Gregory Co., LLC v. AgriCap, LLC, 597 F.3d 591 (4th Cir. 2010).

See also

Secured transactions

Account Receivable

Definition

See accounts receivable.

Account Stated

Definition

A statement between a creditor and a debtor that settles the total amount of debt owed to the creditor.

There are three elements of an account stated: (1) There exists prior transactions between the parties, creating a creditor-debtor...

Accounts Payable

Definition

Short-term debt that a company owes to its suppliers for products received before payment is made. Accounts payable entries are listed under "Current Liabilities" in the business' balance sheet and the items are removed once the account has...

Accounts Receivable

Definition

Money owed to a business by another business or individual in exchange for property or services that were provided on credit. The settlement of an account receivable begins by sending an invoice to the customer. A company enters accounts...

Accrual Method of Accounting

One method of accounting where economic events, such as income and expenses, are recorded at the moment they are incurred, as opposed to when they are received. This provides a more accurate statement of the current financial state of a company and...

Accrue

1. To be added as a matter of periodic gain or advantage, as interest on money.

2. To become a present and enforceable right or demand.

From: Dictionary.com

Adjustable Rate Mortgage (ARM)

A mortgage loan where the interest rate may change in accordance with designated market indicator (such as the LIBOR), as opposed to a set interest rate (such at 6% annually).

Adjustment

Adjustment is a settlement, allowance, or deduction made on a debt or claim that has been objected to by a debtor or creditor in order to establish an equitable arrangement between the parties.

For tax returns, an IRS-...

Adjustment Date

Adjustment date is the date on which a financial term of a contract or transaction is set to change. In real estate, it usually refers to the date on which the interest rate of an adjustable rate mortgage (ARM) changes. An ARM’s interest rate...

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