How is Quity defined in a legal contract?
- Quity means the difference obtained when total liabilities are subtracted from total assets, and this calculation is done according to GAAP (Generally Accepted Accounting Principles). Seen in 2 SEC filings
- Indebtedness means any obligation, on a consolidated basis, of a person for borrowed money. This includes the complete principal amount of convertible debt, notwithstanding its presentation under GAAP. This might be any obligation related to the acquisition of property, assets or businesses and the deferred purchase price of property or any capital lease obligation. This term also covers obligations of a similar type of another person, which such person has guaranteed or for which such person is liable or responsible, provided that an obligation will only constitute Indebtedness if it would look like a liability on the consolidated balance sheet of such a person in accordance with GAAP. Seen in 2 SEC filings
Note: The Genie AI Legal Assistant pulled this data out of the SEC EDGAR Database of 500,000 records from the past 22 years of filings. We regularly update this page as new filings and definitions come in.
Search EDGAR for 'Definitions of quity' yourself to verify these results. We are always keen to point people to source documents.
Which definition should you use?
🤔 Our AI Legal Assistant has combined and improved the above descriptions to create market-standard 'Genie definitions' below, with guidance on which documents and which industry to use for each.
Genie Definition 1
- Quity means the difference between total assets and liabilities, calculated with Generally Accepted Accounting Principles (GAAP).
Relevant Contract Types
Relevant Circumstances
- Setting up a business
- Purchasing or leasing a property
- Negotiating a loan or credit agreement
Relevant Sectors
Genie Definition 2
- Indebtedness means the obligations, including borrowed money and lease obligations, appearing as liabilities on a balance sheet under GAAP.
Relevant Contract Types
Relevant Circumstances
- Obtaining a loan for a business
- Establishing credit terms
- Agreeing terms for a lease
Relevant Sectors
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Members’ Equity means an organization's total assets minus its total liabilities.
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