Legal Glossary

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z #

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National origin discrimination: Discrimination on the basis of an employee's ethnicity.

Negative amortization: Occurs when a borrower's monthly payment is too small to cover both the principal and interest of a loan, so the outstanding balance of the loan actually grows larger with each payment. Many adjustable rate mortgages are susceptible to this.

Negligence: Failure to exercise reasonable care to avoid injuring others or their property. Negligence includes both actions and failure to act.

Negotiation: The process of creating a meeting of the minds between two or more parties in order to reach an agreement.

No-asset case: A Chapter 7 case where there are no assets available to satisfy the creditor's unsecured claims; a case in which all of the debtor's property is "exempt.”

NOL: Net operating loss.

Non-dischargeable debt: A debt that may not be discharged under one or more chapters of the Bankruptcy Code.

Nonexempt property: Property that the debtor owns free and clear of liens and the debtor's property which has market value above the amount of any security interest or lien and any exemption that the debtor holds in the property.

Non-compete agreement: A contract (or part of a contract) in which an employee promises not to work for a competing employer (or to set up a competing business) during, or for a certain length of time after, the employment with the employer.

Non-conforming loan: A non-conforming loan is any loan that doesn't meet the qualifications or is too large to be purchased by Fannie Mae or Freddie Mac.

Non-profit corporation: A business organization that serves some public purpose, and therefore enjoys special treatment under the law. Nonprofits corporations, contrary to their name, can make a profit, but cannot be designed primarily for profit-making. Distributions upon liquidation typically must be made to another nonprofit.

Nonrecurring closing costs: One-time-only fees for items including an appraisal, loan points, credit report, title insurance, and home inspection.

No par shares: Shares for which there is no designated par value.

North Carolina Condominium Act: Refers to Chapter 47C of the General Statutes.

North Carolina Planned Community Act: Refers to Chapter 47F of the General Statutes.

Notary Public: A public officer authorized to administer oaths to attest or certify types of documents, to take depositions and to perform certain other civil functions.