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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
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 .
Supreme Court upheld the federal courts' fight to issue receivers' certificates over the objections of bondholders.