Overdraft facility

An “overdraft facility” is an option for the borrower to withdraw funds on a fluctuating, limited basis from the borrower’s current account in excess of the current balance in the account. (IV. F. – 1:101(4))

Owner-possessor

An “owner-possessor”, in relation to goods, is a person who exercises physical control over the goods with the intention of doing so as, or as if, an owner. ((VIII. – 1:206)

Ownership

“Ownership” is the most comprehensive right a person, the owner, can have over property, including the exclusive right, so far as consistent with applicable laws or rights granted by the owner, to use, enjoy, modify, destroy, dispose of and recover the property. (VIII. – 1:202)

Performance

“Performance”, in relation to an obligation, is the doing by the debtor of what is to be done under the obligation or the not doing by the debtor of what is not to be done. (III. – 1:101(2))

Person

“Person” means a natural or legal person.

Physical control

“Physical control”, in relation to goods, means direct physical control or indirect physical control. (Cf. VIII. – 1:205)

Possession

Possession, in relation to goods, means having physical control over the goods. (VIII. – 1:205)

Possession-agent

A “possession-agent”, in relation to goods, is a person (such as an employee) who exercises direct physical control over the goods on behalf of an owner-possessor or limited-right-possessor (without the

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intention and specific legal relationship required for that person to be a limited-right-possessor); and to whom the owner-possessor or limited-right-possessor may give binding instructions as to the use of the goods in the interest of the owner-possessor or limited-right- possessor. A person is also a possession-agent where that person is accidentally in a position to exercise, and does exercise, direct physical control over the goods for an owner-possessor or limited-right- possessor. (VIII. – 1:208)

Possessory security right

A “possessory security right” is a security right that requires possession of the encumbered corporeal asset by the secured creditor or another person (except the debtor) holding for the secured creditor. (IX. – 1:201(10))

Prescription

“Prescription”, in relation to the right to performance of an obligation, is the legal effect whereby the lapse of a prescribed period of time entitles the debtor to refuse performance.

Presumption

A “presumption” means that the existence of a known fact or state of affairs allows the deduction that something else should be held true, until the contrary is demonstrated.

Price

The “price” is what is due by the debtor under a monetary obligation, in exchange for something supplied or provided, expressed in a currency which the law recognises as such.

Proceeds

“Proceeds”, in relation to proprietary security, is every value derived from an encumbered asset, such as value realised by sale, collection or other disposition; damages or insurance payments in respect of defects, damage or loss; civil and natural fruits, including distributions; and proceeds of proceeds. (IX. – 1:201(11))

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Processing, contract for

A contract for processing is a contract under which one party, the processor, undertakes to perform a service on an existing movable or incorporeal thing or to an immovable structure for another party, the client (except where the service is construction work on an existing building or other immovable structure). (IV. C. – 4:101)

Producer

“Producer” includes, in the case of something made, the maker or manufacturer; in the case of raw material, the person who abstracts or wins it; and in the case of something grown, bred or raised, the grower, breeder or raiser. A special definition applies for the purposes of VI. – 3:204.

Property

“Property” means anything which can be owned: it may be movable or immovable, corporeal or incorporeal.

Proprietary security

A “proprietary security” covers security rights in all kinds of assets, whether movable or immovable, corporeal or incorporeal. (IV. G. – 1:101(g))

Proprietary security, contract for

A “contract for proprietary security” is a contract under which a security provider undertakes to grant a security right to the secured creditor; or a secured creditor is entitled to retain a security right when transferring ownership; or a seller, lessor or other supplier of assets is entitled to retain ownership of the supplied assets in order to secure its rights to performance. (IX. – 1:201(4))

Public holiday

A “public holiday” with reference to a member state, or part of a member state, of the European Union means any day designated as such for that state or part in a list published in the official journal. (I. – 1:110(9))

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Ratify

“Ratify” means confirm with legal effect.

Reasonable

What is “reasonable” is to be objectively ascertained, having regard to the nature and purpose of what is being done, to the circumstances of the case and to any relevant usages and practices. (I. – 1:104)

Reciprocal

An obligation is reciprocal in relation to another obligation if (a) performance of the obligation is due in exchange for performance of the other obligation; (b) it is an obligation to facilitate or accept performance of the other obligation; or (c) it is so clearly connected to the other obligation or its subject matter that performance of the one can reasonably be regarded as dependent on performance of the other. (III. – 1:101(4))

Recklessness

A person is “reckless” if the person knows of an obvious and serious risk of proceeding in a certain way but nonetheless voluntarily proceeds without caring whether or not the risk materialises.

Rent

“Rent” is the money or other value which is due in exchange for a temporary right of use. (IV. B. – 1:101)

Reparation

“Reparation” means compensation or another appropriate measure to reinstate the person suffering damage in the position that person would have been in had the damage not occurred. (VI. – 6:101)

Representative

A “representative” is a person who has authority to affect the legal position of another person, the principal, in relation to a third party by acting in the name of the principal or otherwise in such a way as to indicate an intention to affect the principal’s legal position directly. (II. – 6:102(1))

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