receiver's certificate

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Receiver's certificate

A debt instrument issued by a receiver and serving as a lien on the property, which provides funding to continue operations or to protect assets in receivership.

Receiver's Certificate

A short-term debt security issued by a receiver (or party appointed by secured creditors in a bankruptcy) to finance his activities during bankruptcy proceedings. Despite the fact that they involve bankruptcy, receiver's certificates are low risk because they are secured by the same assets to which the secured creditors hold liens.

receiver's certificate

The short-term debt that is issued by the receiver of a firm in bankruptcy proceedings. Receivers' certificates are of high quality because they have first claim on the bankrupt firm's assets.
References in periodicals archive ?
51) In addition to managing the day-to-day operations of the firm, receivers were legally empowered to break leases and contracts, to withhold interest payments due existing creditors, and, as we saw above in the case of receivers' certificates, to obtain interim financing to keep the distressed railroad running.
As noted earlier in this article, these developments included the unilateral imposition of supersenior borrowings through receivers' certificates, the abrogation of secured lenders' rights to gain possession of and sell off secured property, and the reversal of long-standing rules that gave secured lenders priority over unsecured lenders.
As described above, the creation of receivers' certificates solved the problem of debt overhang and allowed firms to raise funds.
Prominent among the events of the week affecting investors' confidence in Wall Street values, has been the issue of receivers' certificates by the Wabash Railroad for its floating debt .