Ledger - a book that contains the totals from all of journals. The maximum rate of interest fixed by the laws of the various states, which a lender may charge a borrower for the use of money. Lending Institution - Any institution, including a commercial bank, savings and loan association, commercial finance company, or other lender qualified to participate with SBA in the making of loans. The purchase of a business, with financing provided largely by borrowed money, often in the form of junk bonds. Liability - A legal obligation to pay a debt owed.
Current liabilities are debts payable within twelve months.
Long-term liabilities are debts payable over a period of more than twelve months. Lien - A charge upon or security interest in real or personal property maintained to ensure the satisfaction of a debt or duty ordinarily arising by operation of law. An association of two or more partners formed to conduct a business jointly and in which one or more of the partners is liable only to the extent of the amount of money they have invested. Litigation - The practice of taking legal action through the judicial process. Loan Agreement - Agreement to be executed by borrower, containing pertinent terms, conditions, covenants and restrictions.