unsecured liability

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Unsecured Liability

A debt or other liability that is not secured by an asset or lien, but rather by the all issuer's assets not otherwise secured. This means that an unsecured liability carries no collateral; in case of bankruptcy, the bondholder is considered a general creditor. Thus, the bondholder is paid out of funds that do not have a prior claim on them with a secured debt. Like most bonds, an unsecured bond is tradeable. Some unsecured bonds, such Treasury securities, are considered risk-free.

unsecured liability

A liability for which no specific collateral is held by a creditor. Essentially, payment on an unsecured liability is assured by the promise of the borrower.
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Under Chapter 12, farmer debtors may treat certain claims owed to the government resulting from the disposition of farm assets as dischargeable, unsecured liabilities (11 U.
Dutton notes that, "managing risk permeates all facets of an organization, including fiduciary risk and financial risk in maintaining unsecured liabilities in a 409A plan.
However, if it refused to back one it could be powerless to do anything as its current debt is less than 25% of the club's total unsecured liabilities - providing that 75% of support in value terms was secured from other creditors.
The company's unsecured creditors can, however, take some comfort from the fact that Weststar has behaved honourably by putting up its cash while LDV remains a going concern, rather than waiting to pick it up out of administration free of its unsecured liabilities.
That's the message from Phillip Allen, partner in the Birmingham office of accountancy firm Baker Tilly who says he regularly gets involved with personal insolvency cases with unsecured liabilities over pounds 20,000.
The court-approved rehabilitation plan also calls for Nissan to repay 7% of unsecured liabilities over 10 years.
It discovered that Cargo Forwarding International plc was insolvent, having unsecured liabilities of more than pounds 340,000 and no assets.
The plan calls for the firm to repay the remaining unsecured liabilities over the next 16 years.
The notes will be senior, unsecured liabilities of Bancolombia and will rank pari passu, with all of the bank's other present and future unsecured and unsubordinated liabilities (other than those preferred by statute or by operation of law); the notes will rank senior to Bancolombia's existing and future subordinated debt.
Non-priority debts tend to be unsecured liabilities such as credit cards, loans and overdrafts.
The remaining proceeds will be utilized to pay unsecured liabilities in accordance with applicable law and certain advisors' fees and expenses.
Secured liabilities reduce the QSV to determine the net realizable value in more assets; the IRS does not consider unsecured liabilities.