Uncommitted credit facilities are a short-term credit facility which are subject to the discretion of both the borrower and the lender. That is, the creditor has no obligation to extend credit to the borrower, and the borrower has no...
commercial activities
unconscionability
Unconscionability is a defense against the enforcement of a contract or portion of a contract. If a contract is unfair or oppressive to one party in a way that suggests abuses during its formation, a court may find it unconscionable and...
uncovered option
See: naked option.
[Last updated in July of 2024 by the Wex Definitions Team]
undercapitalization
Undercapitalization means that a company does not have enough capital to conduct ordinary business operations. Undercapitalization may also lead to the company being unable to pay its creditors. Among other causes, undercapitalization may...
undersecured debt
An undersecured debt is a debt secured by collateral with a lower value than the total amount of the claim. From the debtor’s perspective, the obligation owed to the creditor has a higher value than the collateral given by the debtor to...
underwrite
Underwrite can refer to one of many different kinds of financial risk taking. Broadly, underwrite means agreeing to some form of financial investment with the possibility of profits or losses. A few examples of underwriting include loans,...
underwriter
An underwriter is an institutional financial organization that assesses and assumes another party’s risk for a fee. Underwriters operate in the context of (1) securities offerings and (2) insurance.
(1) In the context of...
underwriting
Underwriting is the act of assuming a risk by insuring it, such as insuring life or property, or by agreeing to buy all or part of a new issuance of securities to be offered for public offering. It involves a financial institution (like a...
unearned income
Unearned income is money received from sources other than employment or business activities, such as interest, dividends, capital gains, or any income not directly tied to work efforts.
[Last updated in July of 2024 by the...
unfair competition
The law of unfair competition encompasses torts that cause economic harm to a business through deceptive or wrongful business practices. Unfair competition can be broadly divided into two categories:
Unfair competition: This term is...