Insolvency Fund
/ɪnˈsɒlvənsi fʌnd/
Definitions
- (n.) A financial reserve established by law or regulation to cover liabilities arising from insolvencies, ensuring protection for creditors or depositors.
The insolvency fund provided compensation to creditors after the company's bankruptcy.
Forms
- insolvency fund
- insolvency funds
Related terms
See also
Commentary
Often established by regulatory authorities to secure creditor interests; clarity about its funding source and scope is vital in drafting financial security provisions.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.