Common Credit Management Terms

  • Acceleration clause

    A clause in a bank note, bond, or mortgage that in the event of a condition for default, all obligations outstanding are immediately due and payable regardless of their original expiration dates.  Generally, when an acceleration clause is formally executed, the next step is bankruptcy for the customer.

  • Act
    Bankruptcy and Insolvency Act, a federal statute of Canada governing bankruptcy and insolvency.

  • Active Record

    CodeIgniter uses a modified version of the Active Record Database Pattern. This pattern allows information to be retrieved, inserted, and updated in your database with minimal scripting. In some cases only one or two lines of code are necessary to perform a database action. CodeIgniter does not require that each database table be its own class file. It instead provides a more simplified interface.

  • Advance notice
    A legal document under the Act whereby a secured creditor provides 10 days notice to an insolvent debtor of its intention to enforce its security.

  • Arm's Length
    Describes dealings between two parties who are not related by blood or marriage and who are presumed to have approximately equal bargaining power.

  • Assets
    Items that are owned and have value; in the context of bankruptcy it means all the property of the debtor available for the general benefit of creditors.

  • Assignment (in bankruptcy)
    Made by insolvent persons who assign all their property to a trustee for the benefit of their creditors.

  • Automatic discharge

    A first time bankrupt whose discharge is not opposed by the Superintendent, a trustee or a creditor and who has not refused or neglected to receive counselling, is automatically discharged on the expiration of the nine month period immediately following the bankruptcy.


This glossary is presented as a service to our members and the general public. Click on the highlighted letter above and it will take you to the alphabetical section for the term you are seeking. As a new service, we welcome your suggestions to expand our glossary. Think a term should be explained differently? If so, you are welcome to submit the term and its meaning for our consideration. However, you must not do so by violating copyright and other laws. Don't see the term you're looking for? Contact us at so we can help you.