Glossary of Terms
Bankruptcy / Proposal / Financial Glossary |
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| There are 13 entries in the glossary. | |
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| Term | Definition |
| fair market value | The hypothetical value of a piece of property, given a willing purchaser and a willing vendor, and a reasonable amount of time for the property to be exposed to sale and no unusual circumstances, such as liquidation. |
| farm debt mediation act | The federal statute enacted in 1998 to provide for mediation between insolvent commercial farmers and their creditors. |
| final dividend | The last distribution by the Trustee to the creditors of an estate. |
| final statement of receipts and disburse | This document, prepared by the trustee, must contain a complete account of all moneys received by the trustee out of the property of the bankrupt or otherwise, the amount of interest received by the trustee, all moneys disbursed and expenses incurred and the remuneration claimed by the trustee, together with full particulars, description and value of all property of the bankrupt that has not been sold or realized, setting out the reason why the property has not been sold or realized and the disposition made thereof. Once approved by the inspectors (if any inspectors are appointed), it is submitted to the Superintendent for comments. |
| financing statement | Form prescribed under the Personal Property Security Act setting out essential information such as the name of the debtor and the collateral. The secured party must file the financing statement at the Personal Property Registry to perfect a security interest by registration. |
| first meeting of creditors | The meeting called by the Trustee in Bankruptcy to consider the affairs of the bankrupt or the proposal filed by a debtor, to affirm the appointment of the Trustee, to appoint inspectors, and to give such directions to the Trustee as the creditors may see fit. Under the Bankruptcy and Insolvency Act, there is not a meeting of creditors required for simple personal bankruptcy cases (referred to as summary administration bankruptcies), unless the Superintendent of Bankruptcy or creditors holding 25% of the proven claims request one. |
| fixed charge | A security interest that charges specific property. |
| fixtures | Those assets that are attached to or are part of a building, or are fixed to land. |
| floating charge | A type of security interest that charges the debtor's property but does not specify particular assets or pieces of equipment until the security interest or instrument is crystallized. The charge hovers over the property and the debtor is entitled to deal with the property in the normal course of business, until default occurs and the creditor takes action to enforce the security and convert the floating charge into a fixed charge. |
| foreclosure | That action that a lender will take to repossess and sell a piece of property for defaults in mortgage payments. This remedy forecloses the mortgagor’s right of redemption, the rights of subsequent creditors from enforcing security interest, and the rights of the mortgagee to pursue any deficiency realized upon sale of the property. |
| fraud | Deceit, trickery; a deliberate act of deception or misrepresentation with intent to deprive another of property or a right, or in some manner to do him injury; an intentional perversion of the truth. |
| fraudulent preference | Under the Bankruptcy and Insolvency Act, this is the preferring by a debtor of one or more creditors over others by the payment to those creditors of some extraordinary amounts of money. Under the Bankruptcy and Insolvency Act, the Trustee can, under certain circumstances, set aside fraudulent preferences up to three months prior to the date of bankruptcy in the case of arm's length parties and one year in the case of non-arm's length parties. The Provinces also have Acts that can set aside these transactions. |
| fungibles | Goods which are comprised of many identical parts. For example, a bushel of grain, a barrel of apples or oil, which can be easily replaced by other identical goods. One of the tests of whether items are fungible or not is whether they can be sold by weight or number. |
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