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232 months ago

Gina W  See profile asked this question:

Language pair:

French > English

Subject:

Law / Certificates

Level of diffculty:

Easy / medium

Word or term in question:

par incorporation de

Context:

parts sociales émises au pair

Keywords:

bulletin de souscription

 

 

The answer of Prabir Mudaliar  See profile was rated best

by adjustment of

My comment:


I think this refers to the practice in corporate and housing finance by which banks reserve the right to redeem pledged shares at par (that is, at original cost) by adjusting outstandings against any kind of funds available in borrowers' accounts. They resort to this step if they anticipate a serious default or any other trouble which may endanger their stake. (The "offset" principle).

I am not too sure about this, but I'm offering this idea in the hope it may be of some help.

The asker's comment:

Yes, this is definitely not "incorporation". I had also thought of "capitalization" as well. In either case, here this turned out to be more of a financial term than a legal term. Thanks.