What Is a Non-Contestability Clause? A non-contestability clause, also known as an incontestability or no-contest clause, is a provision in a person’s will that threatens to redistribute inheritance if beneficiaries contest the will. The goal is that such a stipulation will dissuade a less-favored child or heir to challenge a will in court, and to minimize
What Are Non-Core Assets? Non-core assets are assets that are either not essential or simply no longer used in a company’s business operations. Non-core assets are often sold when a company needs to raise cash. Some businesses sell their non-core assets in order to pay down debt. Although non-core assets are not critical to a
What Is a Non-Core Item? A non-core item is an engagement considered to be outside of business activities or operations that are the main revenue source of the business. Non-core items are considered to be peripheral or incidental activities, while core items are considered central to operations. Often, businesses will outsource non-core items to firms
What Are Noncredit Services? The term noncredit services refers to fee-based services provided by financial institutions to their customers that don’t involve the extension of credit. Banks and other institutions provide noncredit services to both individual and commercial clients. Some of these services include bank accounts, asset management services, payroll processing, merchant services, and underwriting.
What Is Noncumulative? The term “noncumulative” describes a type of preferred stock that does not pay stockholders any unpaid or omitted dividends. Preferred stock shares are issued with pre-established dividend rates, which may either be stated as a dollar amount or as a percentage of the par value. If the corporation chooses not to pay
What Are Noncurrent Liabilities? Noncurrent liabilities, also called long-term liabilities or long-term debts, are long-term financial obligations listed on a company’s balance sheet. These liabilities have obligations that become due beyond twelve months in the future, as opposed to current liabilities which are short-term debts with maturity dates within the following twelve month period. Key
What Is a Non-Deliverable Swap (NDS)? A non-deliverable swap (NDS) is a variation on a currency swap between major and minor currencies that is restricted or not convertible. This means that there is no actual delivery of the two currencies involved in the swap, unlike a typical currency swap where there is physical exchange of
What Is Nondischargeable Debt? Nondischargeable debt is a type of debt that cannot be eliminated through a bankruptcy proceeding. Such debts include, but are not limited to, student loans; most federal, state, and local taxes; money borrowed on a credit card to pay those taxes; and child support and alimony. Nondischargeable Debt Explained Some additional
What Is a Nondisturbance Clause? A nondisturbance clause is a provision in a mortgage contract that ensures that a rental agreement between the tenant and the landlord will continue under any circumstances. This is done primarily to protect the renter from eviction by the mortgagor if the property is foreclosed upon by the lender. A
What Is a Nonelective Contribution? Nonelective contributions are funds employers choose to direct toward their eligible workers’ employer-sponsored retirement plans regardless if employees make their own contributions. These contributions come directly from the employer and are not deducted from employees’ salaries. This distinction separates a nonelective contribution from a matching contribution, which an employer makes depending
