by Jason M. Gordon | Feb 23, 2025 | Commercial Law: Contract, Payments, Security Interests, & Bankruptcy
What is an Irrevocable Letter of Credit? An irrevocable letter of credit is a financial document from a financial firm that guarantees the buyer’s payment obligation to the seller. Read about how a Letter of Credit works. It is referred to as irrevocable because...
by Jason M. Gordon | Feb 23, 2025 | Commercial Law: Contract, Payments, Security Interests, & Bankruptcy
What is an Unsecured Creditor?Unsecured credit is a credit (loan or debt obligation) issued to a borrower without any form of collateral (such as personal assets or real property). So an unsecured creditor is a lender who has no legal claim to property of the debtor...
by Jason M. Gordon | Feb 23, 2025 | Commercial Law: Contract, Payments, Security Interests, & Bankruptcy
What is a Remittance Letter?A remittance letter, sometimes referred to as a remittance slip, is a letter attached to a payment that explains what the payment is meant for and provides explicit clarification so that the payment is made accordingly. For instance, if...
by Jason M. Gordon | Feb 23, 2025 | Commercial Law: Contract, Payments, Security Interests, & Bankruptcy
What is a Silent Automatic Lien?A silent automatic lien refers to a type of lien employed by the Internal Revenue Service (IRS). Often, it arises automatically upon the occurrence of a delinquent or unpaid tax obligation. It is not filed in public records the way that...
by Jason M. Gordon | Feb 23, 2025 | Commercial Law: Contract, Payments, Security Interests, & Bankruptcy
What is a Reorganization? Reorganization is a process structured to restore a firm that is bankrupt or one that’s financially unstable. A reorganization entails asset and liability restatement, and also holding talks with creditors so as to arrange repayment....
by Jason M. Gordon | Feb 23, 2025 | Commercial Law: Contract, Payments, Security Interests, & Bankruptcy
What is an Accommodation Paper? Accommodation paper is a third-party pledge attached to a promissory note which ensures that the recipient of the promised payment gets paid. Usually, the third party lends their credit rating power to support a borrower having a lower...
