Unsecured Party definition: Copy, customize, and use instantly
Introduction
The term "Unsecured Party" refers to a party in a financial or contractual arrangement that has no specific collateral securing their claim or interest. This status often applies to creditors, claimants, or beneficiaries whose rights are not tied to any pledged assets.
Below are various examples of how "Unsecured Party" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Unsecured Party" as a creditor without collateral
This definition ties "Unsecured Party" to non-collateralized creditors.
"Unsecured Party" refers to any creditor or claimant whose claim is not secured by a lien, charge, or other interest in any specific asset or property of the debtor.
Definition of "Unsecured Party" as a claimant in bankruptcy
This definition connects "Unsecured Party" to bankruptcy proceedings.
"Unsecured Party" means any party with a claim against a debtor in bankruptcy that is not secured by any collateral or priority right, ranking below secured creditors in the distribution hierarchy.
Definition of "Unsecured Party" as a participant in unsecured loans
This definition applies "Unsecured Party" to loan arrangements.
"Unsecured Party" refers to a lender or creditor involved in an unsecured loan, where repayment is based solely on the borrower’s creditworthiness and not backed by specific assets.
Definition of "Unsecured Party" as a supplier without security interests
This definition ties "Unsecured Party" to suppliers.
"Unsecured Party" means any supplier or vendor providing goods or services under terms that do not create a security interest or lien on the goods supplied or payments owed.
Definition of "Unsecured Party" as a beneficiary in trust distributions
This definition applies "Unsecured Party" to trust arrangements.
"Unsecured Party" refers to a beneficiary entitled to trust distributions but without any security interest or collateral securing their rights to payments under the trust.
Definition of "Unsecured Party" as an investor in unsecured bonds
This definition connects "Unsecured Party" to bondholders.
"Unsecured Party" means a bondholder whose investment in an unsecured bond is not backed by specific assets or collateral of the issuer, relying solely on the issuer’s creditworthiness.
Definition of "Unsecured Party" as a stakeholder in insolvency
This definition ties "Unsecured Party" to insolvency claims.
"Unsecured Party" refers to any stakeholder or claimant in an insolvency proceeding whose rights to repayment or recovery are not tied to any specific assets or security.
Definition of "Unsecured Party" as a participant in revolving credit facilities
This definition applies "Unsecured Party" to credit agreements.
"Unsecured Party" means a lender providing funds under a revolving credit facility without requiring specific assets as collateral from the borrower.
Definition of "Unsecured Party" as an obligor without asset backing
This definition ties "Unsecured Party" to non-asset-backed obligations.
"Unsecured Party" refers to any party obligated to fulfill payment or performance under an agreement without the benefit of secured rights or claims to the other party’s assets.
Definition of "Unsecured Party" as a creditor in a debt restructuring
This definition ties "Unsecured Party" to restructuring agreements.
"Unsecured Party" refers to any creditor participating in a debt restructuring agreement without collateral securing their claim, relying on negotiated repayment terms.
Definition of "Unsecured Party" as a participant in trade finance
This definition applies "Unsecured Party" to trade-related agreements.
"Unsecured Party" means any party providing goods or services under trade finance terms without any lien, charge, or security interest securing payment.
Definition of "Unsecured Party" as a counterparty in derivatives contracts
This definition ties "Unsecured Party" to financial instruments.
"Unsecured Party" refers to any counterparty in a derivatives contract whose obligations are not secured by collateral, relying on the creditworthiness of the other party.
Definition of "Unsecured Party" as a holder of convertible debt
This definition connects "Unsecured Party" to convertible financing.
"Unsecured Party" means a holder of convertible debt or bonds that are not backed by any specific collateral but may convert into equity under specified conditions.
Definition of "Unsecured Party" as a beneficiary in insurance claims
This definition applies "Unsecured Party" to insurance agreements.
"Unsecured Party" refers to any beneficiary of an insurance claim whose right to recovery is not supported by a lien or security interest in the insurer’s assets.
Definition of "Unsecured Party" as a stakeholder in liquidation
This definition ties "Unsecured Party" to liquidation processes.
"Unsecured Party" means any stakeholder in a liquidation proceeding whose claims are considered unsecured and rank below secured creditors in the distribution of assets.
Definition of "Unsecured Party" as a party in unsecured lines of credit
This definition applies "Unsecured Party" to flexible credit arrangements.
"Unsecured Party" refers to any lender or provider offering an unsecured line of credit, relying solely on the borrower’s creditworthiness for repayment.
Definition of "Unsecured Party" as a claimant in subordinated debt
This definition ties "Unsecured Party" to lower-priority obligations.
"Unsecured Party" means any holder of subordinated debt that is not secured by collateral and ranks below other creditors in the event of default or insolvency.
Definition of "Unsecured Party" as a provider in service agreements
This definition applies "Unsecured Party" to contractual services.
"Unsecured Party" refers to any service provider entering into an agreement without securing their payment rights with a lien or other collateral arrangement.
Definition of "Unsecured Party" as a recipient of unsecured promissory notes
This definition ties "Unsecured Party" to non-collateralized notes.
"Unsecured Party" means the holder of an unsecured promissory note, where repayment is based solely on the maker’s promise to pay and not backed by collateral.
Definition of "Unsecured Party" as a participant in crowdfunding platforms
This definition ties "Unsecured Party" to alternative funding mechanisms.
"Unsecured Party" refers to any backer or investor providing funds through a crowdfunding platform without collateral securing their contribution or expected return.
Definition of "Unsecured Party" as a lender in peer-to-peer lending
This definition applies "Unsecured Party" to direct lending arrangements.
"Unsecured Party" means a lender providing loans in a peer-to-peer lending arrangement, relying solely on the borrower’s credit profile for repayment.
Definition of "Unsecured Party" as a vendor in open account trading
This definition ties "Unsecured Party" to trade finance practices.
"Unsecured Party" refers to any vendor supplying goods or services under an open account arrangement, without securing payment through liens or guarantees.
Definition of "Unsecured Party" as a participant in unsecured debentures
This definition applies "Unsecured Party" to long-term financing instruments.
"Unsecured Party" means a holder of unsecured debentures that rely solely on the issuer’s financial health for repayment, with no underlying collateral.
Definition of "Unsecured Party" as a claimant in intercompany transactions
This definition ties "Unsecured Party" to intra-group dealings.
"Unsecured Party" refers to any related entity in a corporate group involved in financial transactions that are not backed by secured claims or collateral.
Definition of "Unsecured Party" as a counterparty in margin-free trades
This definition applies "Unsecured Party" to financial trading.
"Unsecured Party" means any counterparty engaging in financial trades without requiring margin or collateral to secure performance obligations.
Definition of "Unsecured Party" as an obligor in penalty clauses
This definition ties "Unsecured Party" to agreements with penalties.
"Unsecured Party" refers to an obligor subject to penalty clauses for defaults but without security interests backing their obligations under the agreement.
Definition of "Unsecured Party" as a funder in unsecured bridge loans
This definition applies "Unsecured Party" to interim financing.
"Unsecured Party" means any lender providing bridge financing that is not secured by collateral, relying solely on the borrower’s ability to secure long-term financing.
Definition of "Unsecured Party" as a payee in settlement agreements
This definition ties "Unsecured Party" to contractual settlements.
"Unsecured Party" refers to a payee under a settlement agreement whose rights to payment are not secured by a lien, pledge, or other collateral.
Definition of "Unsecured Party" as a supplier in just-in-time contracts
This definition applies "Unsecured Party" to operational agreements.
"Unsecured Party" means a supplier providing goods under a just-in-time supply chain arrangement, relying on timely payment without securing obligations through collateral.
Definition of "Unsecured Party" as a claimant in employee wage claims
This definition ties "Unsecured Party" to wage disputes.
"Unsecured Party" refers to any employee with a claim for unpaid wages or benefits under an agreement, not secured by any collateral or priority lien.
Definition of "Unsecured Party" as a participant in unsecured private equity loans
This definition applies "Unsecured Party" to equity-related lending.
"Unsecured Party" means a lender providing funds to a private equity venture without securing the loan with specific assets of the portfolio company.
Definition of "Unsecured Party" as a participant in royalty agreements
This definition ties "Unsecured Party" to intellectual property income.
"Unsecured Party" refers to a recipient of royalties or other payments under an intellectual property agreement, without collateral securing their entitlement.
Definition of "Unsecured Party" as a contractor in deferred payment arrangements
This definition applies "Unsecured Party" to service providers.
"Unsecured Party" means a contractor or service provider agreeing to deferred payments for work completed, with no security interest guaranteeing the payment.
Definition of "Unsecured Party" as an investor in mezzanine financing
This definition ties "Unsecured Party" to subordinated debt.
"Unsecured Party" refers to any investor holding mezzanine debt that is not secured by specific collateral and ranks below senior creditors in priority.
Definition of "Unsecured Party" as a participant in unsecured leasing agreements
This definition applies "Unsecured Party" to lease contracts.
"Unsecured Party" means a lessor or lessee involved in a lease agreement where payment obligations are not backed by a lien or pledge on the leased property.
Definition of "Unsecured Party" as a funder in litigation financing
This definition ties "Unsecured Party" to legal funding.
"Unsecured Party" refers to any funder providing financing for legal claims, relying solely on the anticipated recovery from litigation outcomes without collateral.
Definition of "Unsecured Party" as a recipient of deferred dividends
This definition applies "Unsecured Party" to equity distributions.
"Unsecured Party" means a shareholder entitled to deferred dividend payments, with no security interest ensuring the distribution of funds.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.