Subchapter S corporations, or S corporations, are corporations that are taxed on a "flow -through" basis. This means that tax liabilities from income (or deductions from losses) are passed onto the corporations' shareholders to be declared...
commercial transactions
subprime loan
A subprime loan is a loan made to a borrower who is not eligible for the best market rates (known as prime rates), but rather at a higher rate of interest because of increased risk factors.
Subprime borrowers usually have...
subprime mortgage
A subprime mortgage is a subprime loan used as a mortgage (to buy property, such as a house).
See also: debt, credit score
[Last updated in June of 2022 by the Wex Definitions Team]
subrogation
Subrogation is the process where one party assumes the legal rights of another, typically by substituting one creditor for another. Subrogation can also occur when one party takes over another's right to sue.
For example,...
subsidiary
A subsidiary is an entity (e.g., a corporation) in which another entity (known as the parent or holding company) has a controlling share. Although the subsidiary operates as a separate legal entity, the parent company can influence its...
Superfund
Superfund is the shorthand name often used to refer to the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA). CERCLA is codified in 42 U.S.C. Chapter 103. It is a large piece of legislation that gives the...
supplier's lien
A supplier’s lien is a type of lien that grants a security interest in property to someone who supplies materials used in work performed on that property. This legal claim ensures that the supplier has a right over the property or goods...
surety
A surety is a person or entity that assumes direct liability for another’s obligation. Financial creditors may require the debtor to find a surety, who then signs the loan agreement along with the debtor. A financial surety’s liability arises...
surety bond
A surety bond is a contractual agreement involving three parties:
The principal The obligee The suretyThe principal is the party that needs the bond, the obligee is the party that requires the bond, and the surety is...
swindle
To swindle means to dispossess someone of money or property through fraud or deceit.
[Last updated in March of 2022 by the Wex Definitions Team]