Usual Terms


Synonym – passive receivable, external liability 1. From a legal point of view, obligation undertaken by an individual or legal entity (debtor) to another individual or legal entity (creditor) that, at its turn, has a receivable certified in a legal relation related to the reimbursement within a certain term of a certain amount or of certain goods. The said obligation results from a contractual relation or under the law. The debt shall end following the obligation full performance. 2. From the accounting point of view, the debts represent external financing sources provided to a company, either by bond holders and credit institutions (financial debts), or by suppliers (generally operation debts), or by other third parties (financial or social debts). The balance sheet liabilities of Romanian enterprises regroup debts in four positions:- loan facilities and assimilated debts (financial debts);- suppliers and assimilated accounts (generally operation related debts);- advance payments received from the customers (customers-creditors) and other debts (wage debts, social debts, fiscal debts, debts to shareholders, debts to other creditors etc.). In addition to the balance sheet, the appendix classified the debts, based on the maturity thereof, in: - debts with maturity date within one year;- debts with maturity date between 1 and 5 years and debts with maturity within more than 5 years. From the financial point of view, in addition to the maturity related classification, which enables the determination of the company creditworthiness, the most significant classification is the one that separates the financial debts (that generate interests) from the operation related ones which, with few exceptions, are not remunerated (do not bear interest).


1. Debt of a credited person. 2. The left side of an accounting account that represents the assets increase, liabilities expenses and decrease, as well as of bonds.


The individual or legal entity that owes a certain amount of money to the creditor, bound to perform in favor of the creditor a certain action that consists in giving, doing or not doming something.


Official written invitation, under which a person is required to compare in front of a court of law or another authority. The persons summoned by legal bodies may have the capacity as defendants or witnesses.


Free agreement of two or more individuals or legal entities, in order to create, amend or terminate certain legal relations, following negotiations. From a commercial point of view, represents a basic document related to the execution of trading transactions, as well as a source of civil obligations.

Mandate Agreement

Is an agreement under which a person – agent – undertakes to enter into legal deeds on behalf of another person - principal – who grants such power of attorney (art. 1532 of the Civil Code) and who is represented. Although it mainly represents a free of charge agreement, the law does not restrict the agent remuneration, to the extent there is an express provision in this respect. (art. 1534 of the Civil Code). The mandate agreement can have two forms: - representation mandate agreement; - mandate without representation agreement. The mandate agreement has the following versions: the persons interposition agreement, the agency agreement and the consignment agreement.


The patrimonial right of an individual or legal entity (creditor) against another individual or legal entity (debtor), regarding the fulfillment of an obligation to return a good, an amount of money, to perform a service etc. Any receivable is pursued based on a contractual provision or applicable legal provision.

Certain receivable

The concept that designates a receivable with a doubtful existence, namely regarding which no dispute has been initiated. A receivable’s certitude represents a requirement for the initiation of further proceedings: - filing a receivable forced execution claim;- applying the legal setoff;- the creditor’s filing of both the revocatory and the cross action.

Due receivable

The concept that designates the receivable with due maturity, namely whose execution, even forced, may be claimed by the creditor. The receivable maturity is different, depending whether the receivable is pure and simple or affected by modalities. Thus, in case of pure and simple obligations, the receivable becomes due as of the creation of the obligation legal relation. In case of obligations affected by a suspensive term, the receivable only becomes due upon the anniversary of such term. The court shall be entitled to suspend a receivable’s maturity by granting a period of grace in favor of the debtor. The due nature of a receivable shall cease by means of the releasing payment thereof, as well as under the extinctive prescription effect.

Bad debt

The receivable fully lost by the enterprise (following the debtor disappearance, unsuccessful recovery proceedings, waiver regarding a receivable due to the low amount thereof etc.).

Liquid receivable

The concept that designates a receivable with clearly determined amount. The receivables that contemplate a determined amount of money or a determined quantity of generic goods are liquid receivables. The receivables whose amount should be determined in court, such as: - the right to indemnities in order to repair a prejudice caused by a prejudicing illicit action; - the aright to alimony, etc. cannot be qualifies as liquid. Such receivables become liquid and may be characterized as such only as of the moment when the relevant court resolution has become final. The liquid nature of a receivable is a condition precedent for the operation of the legal setoff as well as for the creditor initiation of a cross-action or of a revocatory action.

Dispute receivable

The receivable whose amount is challenged by the debtors. The receivables found as in dispute during the inventory shall be transferred from account 411 "Customers" or 461 "Various debtors" to account 416 "Uncertain customers", at the amount in dispute, including VAT.

Bank loan facility

The loan facility under which the bank provides the applicant with amounts of money that shall be reimbursed at a certain term (cash loan facility). The bank loan facility is based on an agreement concluded between the bank and a customer, individual, legal entity or public corporation.

Consumer credit

Loan facility under which the borrower receives a certain amount of money that he undertakes to reimburse in regular constant installments plus interests.


The individual or legal entity, holder of a receivable, entitled to require the debtor to fulfill the undertaken obligation, namely to give, to do or not to do something.


Reliability of an individual or legal entity upon the application for a banking loan facility. The solvency of an enterprise, namely its capacity to meet its financial liabilities and the reliability thereof. In international practice, the creditworthiness level, extended at the national economy level, is marked with the first letters of the alphabet: A and B, or with stars. The highest creditworthiness degree is marked with AAA, or with 7 stars. At an international level, there are international organizations authorized to determine the creditworthiness level, such as Standard & Poor's

Financial creditworthiness

Assessment granted to an economic operator in case of a bank loan facility application. The commercial bank determines the loan facility reimbursement capacity based on the customer business plan or, in case of more complex technological projects, based on the project feasibility survey, which shows the way in which the borrowed amount shall be used. The bank customers (economic operators) able to reimburse the loan installments benefit of financial creditworthiness.

Forced execution

Procedure set out by the law, through which the holder of a subjective right, recognized by a writ of execution, forces, by means of the competent state bodies, the one who has failed to comply with such right, to fulfill the performance set out by the title, thus ensuring the compliance with the initially breached right and also the return to the legal order. Generally, the title based on which the forced execution takes place is a final court resolution, an consequently the execution proceedings are part of the civil trail


Governmental officer involved in the forced execution of resolutions issued by jurisdiction bodies.

Official receiver

Auxiliary personnel, employed with tribunals and local courts, which performs the forced execution of the civil provisions included in writs of execution and perform any other powers set out by the law. The official receivers are appointed by the Minister of Justice. Their activity is managed and supervised by the chairmen of the relevant courts.

Fiscal invoice

Special regime document that certifies the ownership transfer upon a good to a legal entity.

Pro forma invoice

Document issued by the seller and that sets out the goods to be sold, with the main features and price thereof. Is issued to purchasers for the following purposes: - in order to enable the importer to acquire from the bank the required foreign currency; - in order to enable the importer to acquire the import license; - upon the bank request, for the execution of a documentary loan facility; - in case the customs authorities of the importer country request a consular pro forma invoice (endorsed by the importer country council located in the exporter country in order to certify the goods origin). The pro forma invoice does not represent a payment instrument. It does not include the shipment marks and should clearly set out "pro forma". While the commercial invoice is a payment request for the delivered goods, the pro forma invoice is a purchase invitation, sent to a potential purchaser.


The difficult economic status of a debtor which is unable to pay its commercial debts (to its creditors); the debtor insolvency status certified by the tribunal based on the bankrupt person’s statement or upon the request of one or more creditors.


Cooperation between a company referred to as "franchisor" and one (or more) companies referred to as "franchised ". The franchisor, who holds the ownership upon a certain registered trademark (or services), grants to the franchised cash resources and specialized support, as well as the right to use its trademark, in order to perform certain commercial businesses. The franchised has a limited action freedom, set out under the agreement and shall pay, on a regular basis, a share of the registered profit into the franchisor account. See the franchise agreement.


Action under which a person referred to as lender grants to another person referred to as borrower a quantity of consumer, non-consumer goods, and/or a certain amount of money, the borrower following to reimburse such on maturity, under certain terms.


Synonym - insolvent Which is not solvent, which cannot pay its debts, which is subject to insolvency status.


Status under which the amount of assets held by an economic operator is lower than the amount of liabilities thereof to third parties (creditors, suppliers, budget). By selling all held assets, the economic operator cannot pay all its undertaken liabilities. The continued insolvency is the bankruptcy cause.


Person appointed in order to draw up the documentation related to a trading company winding-up. The documentation includes the inventory and winding-up balance sheet, which show the accurate status of the company assets and liabilities. The liquidator is bound to receive and keep in the company estate, the records entrusted by the directors, as well as the company documents. Also, he shall be bound to maintain a record with all winding-up operations, in chronological order.


Type of sale under which several economic operators compete for the purchase of an economic good or in order to acquire a tender contract. The tender can be of several types, depending on the adjudication of the proposed objective: - regular or English tender, where the procurement tenders are made as of an opening price and continue with ascending prices until no other person offers a higher price; - the tender of the second price, where the maximum adjudication price shall be decreased to the immediately following price (the second), in descending order; - Dutch tender, which begins from a high price and decreases to the price offered by a purchaser; - first price tender, where the procurement tenders (adjudication) are made in writing, and the seller selects the one with the highest price.


The procedure of distributing the estate upon the company winding-up following the merger or dissolution thereof, which refers to the achievement of assets elements (changing the assets into cash) and the creditors’ payment, for the distribution of remaining net assets between the shareholders. Therefore, the winding-up is preceded by dissolution. All documents issued by the winding-up company should set out the company status (subject to winding-up). The company estate shall continue to belong to the company, as separate legal subject. Further to the winding-up resolution approval, the shareholders meeting shall appoint the liquidators and shall set out the powers thereof related to the winding-up proceedings. In case the liquidators have not been appointed under the shareholders meeting resolution, such appointment shall be made by the court of law, upon the request of any director or manager.

Legal entity

Collectivity of individuals, with capacity as separate subject, which automatically benefits of its own organization and estate, used for a certain goal. In a wider interpretation, the legal entity acts as institution, association, organization, trading company etc.


1. From a legal point of view, the termination of a right to act or to enforce a resolution following the failure to exercise the said within the term set out by the law or acquiring the ownership upon a good following the possession thereof (see extinctive and acquiring prescription). 2. From the banking point of view, the end of a receivable or release of debt at the end of a certain period of time. The receivables secured with mortgage are generally exempted from prescription.

The creditors register

Appendix-register to the financial register, where all creditors that have guaranteed a loan facility with real estate mortgages are registered.


Synonym – due date 1. A loan facility agreed due date. 2. Expiry of the bank cash deposit term. 3. Beginning of the right to receive a dividend, an interest.


Written announcement sent by a creditor to a debtor, regarding the latter’s obligation to meet the financial liabilities, otherwise becoming subject to forced execution.

Stamp fee

The fee applied by notary public offices, local courts, tribunals and other jurisdictional authorities for the units that trade products and/or services subject to certain stamps (tax, postal, literary, theater, musical, ethnic and artists stamps). The stamp fees are set out by the Government Resolution no. 1295/1990 amended by the Government Ordinance no. 10/1993, and the notary public business stamp fees by the Government ordinance no. 37/1995. Thus, the claims and applications filed with courts of law, as well as those relate to notary public activities are subject to the stamp fee.


Based on civil law, a future and certain event, until the expiry of which the rights exercise and obligations fulfillment is postponed. Depending on the effects thereof, we can notice a suspensive term, or an extending term. Depending on the knowledge of the expiry date thereof, as of the execution of the civil legal deed, the term may be certain or uncertain. Depending on its source, the term can be voluntary, legal and judicial. Depending on the term beneficiary, we have terms that operate in favor of the debtor, in favor of the creditor and in favor of both parties. Depending on their nature, the terms may be imperative (peremptory) or prohibitive (extending). Depending on their effects, the terms may be absolute (comminatory) or relative (recommendation). Depending on the computing sense thereof, the terms may be successive or regressive.

Legal term

Synonyms – jurisdictional concept, term of grace Term granted to the debtor by the court of law.

Revenue stamp

Printed instrument of small sizes, issued by the state, intended for the payment of certain taxes or charges.

Legal stamp

Obligation of the persons who refer to the legal bodies, under certain circumstances, to pay an additional stamp fee. The relevant revenues are used for a better operation of the courts of law, the procurement of certain specialized papers, granted incentives etc. The legal stamp applies to the cases subject to the stamp fee; is not due for cases exempted from the stamp fee. The legal fee is affixed on claims upon the filing thereof, on resolution copies as well as in case of recourse actions (appeal and second appeal). The said stamp is also used for notary public works, also depending on the deed value. The obligation to affix the legal stamp has been set out by the Government ordinance no. 32/1995 amended by Law no. 124/1997.

Check/ Promissory note

Registered or bearer document, under which the holder of a current or settlement bank account or another authorized person orders the payment of an amount of money from the liquidities held in the owner’s bank account.
The cheque is safer for collection because in case the payment shall be rejected, the signatory (individual) shall be subject to criminal liability, while in case of the promissory note, the liability is not criminal.
Guaranteed promissory note means that the guarantor secures the payment, namely shall pay on behalf of the issuer, provided that the latter shall not be able to make the payment.