debt

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debt,

obligation in services, money, or goods owed by one party, the debtor, to another, the creditor. When contested, debts are collected by a civil suit upon which the judge renders a judgment, and an execution is levied on the debtor's property. In ancient nations debt was associated with slavery because the insolvent debtor and his household were in many cases turned over to the creditor to perform compulsory services. In early Rome the insolvent was given into custody of the creditor for 60 days prior to his sale as a slave, subject to such treatment as pleased the creditor. That arrangement was mitigated in 494 B.C. by the first of the uprisings of the Roman people; turbulence in Rome afterward was to a large extent occasioned by the desire to restrain creditors. In Greece the reforms of SolonSolon
, c.639–c.559 B.C., Athenian statesman, lawgiver, and reformer. He was also a poet, and some of his patriotic verse in the Ionic dialect is extant. At some time (perhaps c.600 B.C.) he led the Athenians in the recapture of Salamis from the Megarians.
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 had a similar origin. In ancient Israel, every 50th year—the year of jubilee—Jewish debtors were freed and their obligations were canceled. Sumerian and Babylonian kings also periodically proclaimed jubilee periods when debts over seven years old were forgiven. Imprisonment for debt, which once crowded prisons, was ended in theory in England and the United States by laws enacted in the 19th cent. The laws of bankruptcybankruptcy,
in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most instances, to
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 are designed to apply the resources of debtors to their debts and thereafter to remove such legal obligations.

Bibliography

See D. Graeber, Debt: The First 5,000 Years (2011).

References in periodicals archive ?
Since the defendant's submissions were not sufficient to establish that the arbitrator and the master arbitrator were correct in awarding the defendant no-fault insurance benefits in the principal sum of $11,352.46, the Supreme Court should not have searched the record and awarded summary judgment to the defendant.
At the closing, the Normans executed a credit line deed of trust note, whereby they agreed to pay "the principal sum" of $2,310,000 plus interest at a stated rate, and the bank agreed to make "a loan in the principal amount" of $2,310,000.
The balance of any of the principal sum of $1.3 million remaining after the Rights Issue will be repaid by the Company to the Lender as soon as reasonably possible following completion of the Rights Issue.
"Dar al-Arkan transferred the total principal sum to Deutsche Bank, the principal paying agents, on Thursday and the sukuk account holders will receive the funds on Monday," the firm said in the statement.
DAAR transferred the total principal sum to Deutsche Bank (the principal paying agents) on Thursday and the sukuk account holders will receive funds on Monday, a company press release said.
with the principal sum when the restructured loan finally matures.
If interest was added, the amount would more than double the principal sum claimed.
10 -- Last week, the parliament of Sri Lanka passed a special amendment to the Recovery of Loans by Banks (Special Provisions) Amendment Act No 4 of 1990 which rules that parate execution only if the principal sum borrowed is over Rs 5.0 million.
Simple interest is the payment of interest on the initial principal sum. In contrast, compound interest is the payment of interest on the initial principal sum plus payment of interest on interest accrued in prior periods.
The global investment firm first invested in the Group in April 2010 by subscribing a principal sum of HK$80 million convertible bonds.
Accidental loss of two limbs or loss of sight of both eyes results in payment of the principal sum, while accidental loss of one limb or loss of sight in one eye results in one-half of the principal sum being paid.
In the London ruling, a judge sided with Blom in part, saying that while Dar should repay the principal sum, it had an arguable defense regarding the extra profit.

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