A clause in an automobile insurance policy that provides that if the owner or a passenger suffers any injury because of the actions of a driver of another vehicle who does not have liability insurance, the insurance company will pay its insured's actual damages.
A statute that allows people to name a beneficiary to inherit stocks or bonds without probate. This is called registering the securities in beneficiary or transfer-on-death form. The owner of the securities can register them with a broker using a simple form that names a person to receive the property after the owner's death. Every state but Texas has adopted the statute.
Income from investments, such as interest, dividends, or capital gains, or any other income that isn't compensation for services.
1) To agree to pay an obligation which may arise from an insurance policy. 2) To guarantee purchase of all shares of stock or bonds being issued by a corporation, including an agreement to purchase by the underwriter if the public does not buy all the shares or bonds. 3) To guarantee by investment in a business or project.
A debt secured by collateral that is worth less than the debtor owes. A $500,000 mortgage on a house worth $450,000 is undersecured, for example.
A situation in which a company does not have enough cash available to carry on its business.
Stock that has been reacquired by the issuing corporation. While held by the issuer, the stock is considered issued but not outstanding, and is not considered in measuring the value of outstanding common shares.
An additional charge of money made because it was omitted in the original calculation or as a penalty, such as for paying a bill late.
An amount that is directly stated in a contract or negotiable instrument (like a promissory note) at the time the document is written. For example, "I agree to pay you $500 for painting my living room."
Putting one person or thing in the place of another. For example, a substitution of parties takes place when a new party is named to take the place of a party who has died or is otherwise unable to continue as a party. Or, one attorney might substitute into a case to replace the attorney of record if, for example, the client fired the first attorney.