Archives: Glossary

A contract under which a seller agrees to sell, and a buyer to buy, receivables on a recurring schedule on terms set in advance.

A company that purchases debts, often charged-off consumer debts, from the original creditor or another owner.

A label for people who claim they are not subject to government authority or courts unless they consent. We have not found a court decision upholding these claims.

Money that the law recognizes as a valid offer of payment for debts. Under 31 U.S.C. § 5103, U.S. coins and currency, including Federal Reserve notes, are legal tender for all debts, public charges, taxes and dues. According to the Federal Reserve, this means U.S. money is a valid and legal offer of payment for debts when tendered to a creditor, but no federal statute requires a private business to accept cash as payment for goods or services; state or local law may.

The body of law governing maritime matters such as ships, cargo and navigable waters, and the jurisdiction of courts over those cases.

Having full legal capacity to manage one’s own affairs, as opposed to a minor or a person under guardianship.

In California and some other states, a pleading that challenges the legal sufficiency of a complaint, similar to a federal motion to dismiss for failure to state a claim.

The legal process by which a secured creditor sells real property securing a debt after a default, under state law.

A security instrument used in many states in which the borrower conveys an interest in real property to a trustee to secure a loan, usually with a power of sale.

A security instrument that gives a lender an interest in real property to secure repayment of a debt.