Written by attorneys · grounded in primary & secondary sources — see below
The condition or state of owing money. A debt or obligation to pay that may be antecedent, secured, or distributed under corporate or partnership rules.
Idris Ives promised in writing to pay Ines Ibarra the balance remaining on a contract for consulting services that had become unenforceable due to the statute of limitations. Ibarra relied on the promise and refrained from filing suit. The promise binds Ives because it acknowledges an antecedent contractual indebtedness that would otherwise be barred.
Ideal Solutions' board approved a pledge of its entire inventory and equipment to secure a new loan from Ivy Investments. The transaction occurred outside the ordinary course of business and without shareholder vote. The board's action is authorized because the pledge dedicates assets to repayment of indebtedness.
Select any source to read its text and confirm it supports the definition.
Iain Irons expressly promised Ibrahim Iqbal to repay half the balance of a prior loan that had been discharged in Irons' bankruptcy case. The promise was made after the discharge order but before any new consideration. The promise is binding on Irons despite the prior discharge of the underlying indebtedness.
Integrity Partners, a Delaware corporation, owed a substantial sum to a nonresident creditor. The creditor sought to attach the indebtedness in a state where the debtor corporation maintained its principal bank accounts. The attachment provided a basis for jurisdiction because the indebtedness constituted property located in the forum state.
Indigo Textiles mortgaged its factory to secure a construction loan. A state statute later extended the redemption period and altered payment terms on existing mortgage indebtedness. The statute was challenged as impairing the obligation of contracts. The Court upheld the law as a reasonable response to an economic emergency affecting mortgage indebtedness.
A national political party received large soft-money donations from corporate donors. Federal officeholders who benefited from the funds later granted access and favorable treatment to the donors. The arrangement created an appearance of indebtedness on the part of the officeholders that justified restrictions on such contributions.
A mortgage is an accessory security device that exists only to secure performance of an underlying obligation. Without an enforceable debt or promise to pay, the mortgage never attaches and cannot be foreclosed.
Supporting sources
A voluntary written acknowledgment admitting the present existence of antecedent contractual indebtedness revives the obligation even if the statute of limitations has run, provided the acknowledgment is made to the obligee.
Supporting sources
A board may mortgage, pledge, or otherwise encumber any or all corporate assets to secure repayment of indebtedness regardless of whether the transaction occurs in the usual course of business.
Supporting sources
Once the underlying indebtedness is fully paid, the mortgage lien is discharged and the lender must issue and record a satisfaction to clear title.
Supporting sources
…regardless of the residence or presence of the owner. That jurisdiction extends alike to tangible and to intangible property. Indebtedness due from a resident to a non-resident—of which bank deposits are an example—is property within the State. Chicago, Rock Island & Pacific Ry. Co. v. Sturm , 174 U. S. 710. It is, indeed,…