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Cash against Documents (CAD) / Cash on Delivery (COD)

A payment arrangement in which the seller retains title and control of the goods after the shipment. The goods will be released to the buyer or a party designated by the buyer after full payment has been received by the seller.

Chapter 11 of the US Bankruptcy Act

When a debtor in USA is unable to pay his debts, he may, under Chapter 11 of the Bankruptcy Act apply to a Bankruptcy Court for protection against complete bankruptcy, submitting at the same time a plan for paying his debt, which is normally less than the amount due, and over a period of time. If the application is approved, the Court will allow the stay of any litigation and execution of any judgment against the debtor.

Chapter 7 of the US Bankruptcy Act

Chapter 7 of the US Bankruptcy Act deals with involuntary bankruptcy proceedings in the United States. Such proceedings become necessary when creditors do not accept the re-payment plan of the debtor proposed under Chapter 11. The Bankruptcy Court would then adjudicate the debtor a bankrupt under Chapter 7, and a compulsory winding-up of the debtor would follow.

Claim (Notice of Claim)

An application by the policyholder to the insurer for indemnification of a loss covered under the policy.

Claw-back

If it is discovered that the policyholder has given any false, fraudulent or misleading information in connection with any claim lodged under the policy or that the policyholder has not complied with his obligation relating to recoveries, all payment made by the insurer must be repaid to the insurer.

Collateral

Property or other assets that a borrower offers a lender to secure a loan.

Consignment

Possession of goods by a consignee with the obligation to pay the consignor after the sale of goods to a third party or the consignee’s own consumption of the goods.

Contract Repudiation

The commercial risks that arise from: (1) the buyer's cancellation of sales contract before the shipment of goods; or (2) the buyer's failure to take delivery of goods after the shipment.

Counterclaims

A “cross” action which is not a defence, which allows the defendant in the original proceedings to make a claim against the person suing him.

Credit Insurance

Insurance that protects a seller of goods or services from the risk of default/bad debt of its accounts receivable arising from trade.

Credit Limit

The maximum amount of loss that an insurer may be liable on a particular buyer. It may contain additional conditions of cover forming part of the policy.
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