A Net Profits Interest (“NPI”) is a type of economic interest in an entity, typically a business, that entitles the holder to a share of the entity’s profits, net of expenses. The NPI is a contractual right, typically granted in connection with a transaction or relationship between the holder and the entity, such as an … Read more
Split payroll refers to a payroll system where an employee’s wages are paid out in two separate payments: one for their regular salary and one for their overtime wages. This system is often used in companies where employees are paid hourly, and it allows employees to receive their regular wages on their regular pay day, … Read more
Retainer Fee: Meaning, Uses, Example, and How It Works What is a retainer in legal terms? A retainer is a sum of money paid in advance by a client to a lawyer, which is used to cover the lawyer’s initial costs in taking on the client’s case. The lawyer will then bill the client for … Read more
A controlling interest is defined as the ownership of more than 50% of the voting shares of a company. A shareholder with a controlling interest has the ability to elect a majority of the board of directors and, as a result, exert significant influence over the company’s operations and strategy. There are a number of … Read more
Available funds are the total amount of cash and cash equivalents that a company has on hand at any given time. This includes money that is held in checking and savings accounts, as well as any money that is invested in short-term assets such as Treasury bills. The available funds definition can be used in … Read more
An escrow account is a bank account held in trust for two parties in a financial transaction. This account is used to hold funds until all conditions of the transaction are met, at which point the funds are released to the appropriate party. The use of an escrow account protects both parties in a financial … Read more
A non-cash charge is an accounting term used to describe a charge that does not affect a company’s cash position. Non-cash charges are typically recorded as an expense on a company’s income statement, but do not involve a cash outlay. For example, amortization and depreciation are common non-cash charges. What is a non-cash charge? Non-cash … Read more
Cash collateral refers to the use of cash or cash equivalents to secure a loan or other credit facility. The cash is typically used to fund operations or other short-term needs, and the collateral may be in the form of investments, receivables, or other assets. What are the 4 types of collateral? There are four … Read more
