Jargon buster

Bad and doubtful debts

Loans that are likely to remain uncollectible and will be written off.

Enforceable undertaking

A written undertaking offered by an investment company to the Securities Commission, usually because of non-compliance with securities law or some other areas of concern. The undertaking specifies the steps the company agrees to take to remedy the breach. "Enforceable" means the undertaking is enforceable in the courts.

Impaired and past due assets

Overdue loans that may not be recoverable. These could be as much as 90 days overdue but the number of days differs among companies.

Impaired asset expense

The money put aside by the finance company to cover bad and doubtful debts.

Investment statement

An advertisement for an offering of securities. The purpose of the investment statement is to provide key information to the prudent but non-expert investor. The investment statement is the primary disclosure document.

Net receivables

The income a finance company receives from loan repayments, less expenses.

Prospectus

Contains more detailed information concerning the offer of securities than the investment statement. Explains the offer, including the terms, issuer, planned use of the money, historical financial statements, and other information that could help you decide if the investment is suitable for you.

Receiver

Person appointed to manage the affairs of a company that can't pay its debts.

Related-party transactions

Transactions between a company and others (companies or individuals) that have personal or business links with the company or its management.