In re Aura Systems, Inc.

Casebooks

Commercial Law

• King, 6th Ed.

Key Terms

• Summary JudgmentA final ruling that there is no genuine issue of material fact in dispute and that the moving party is entitled to judgment as a matter of law. Summary judgment may also be called summary disposition.
• EncumbranceA claim on real property by someone other than the owner; a lien or mortgage.
• SettlementThe act of adjusting claims or resolving legal disputes among parties without pursuing the matter through a trial.
• Personal PropertyProperty that is movable or intangible, in contrast to real property.
• CollateralProperty pledged to secure payment of a loan or other obligation.
• InstallmentPayments of a portion of debt made in intervals agreed upon by the debtor and creditor.
• Accounts ReceivableAccounts representing money owed to a company by its client for products or services extended on credit.
• SecuritiesFinancial instruments sold in financial markets, including stocks, bonds, debentures, and other interests representing shares of ownership of companies.
• DefaultThe failure of a party to timely do or file something in a legal proceeding. In the context of contract law, default may refer to the failure of a party to comply with contractual obligations or meet required contractual standards.
• CorporationA business that is a legal entity and shares in the profits of the business but whose owners are not personally liable for any debts or losses of the business.
• Judgment LienA court decree that gives the holder of judgment the right to take possession of real property to satisfy the judgment.
• PerfectionThe completion of acts necessary to make a legal instrument or interest enforceable against third parties.
• Chapter 11 BankruptcyA type of voluntary bankruptcy that allows a debtor to continue operating a business while reorganizing its finances to ensure payment to creditors.
• Secured CreditorA creditor who has the legal right, upon the debtor’s default, to proceed against collateral which can then be applied to satisfaction of the debt.
• Uniform Commercial Code Article 9Article of the Uniform Commercial Code governing all aspects of secured transactions, including the requirements for attachment and perfection.
• EquipmentGoods, other than farm equipment or inventory, used in the course of a business under the Uniform Commercial Code.
• InventoryGoods sold, leased, or consumed in the course of a business under the Uniform Commercial Code.
• Common StockShares of ownership in a corporation that convey voting rights upon the shareholder; common stockholders have the lowest priority in the event of a liquidation or bankruptcy.
• Security InterestAn interest in real or personal property that exists because the property has been offered as security, or collateral, for an obligation or debt. A creditor who holds a security interest in a debtor's property may claim that property as a forfeit if the debtor defaults.
• Proof of ClaimIn a bankruptcy proceeding, a filing by a creditor for payment of a pre-petition debt owed by the debtor.

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