Definitions for "Due Diligence"
The process of investigation, performed by investors, into the details of a potential investment, such as an examination of operations and management and the verification of material facts.
The degree of prudence that might be properly expected from a reasonable person. For grantmaking, reviewers exercise due diligence by providing a thorough review of relevant documents.
An internal audit of a target firm by an acquiring firm. Offers are often made contingent upon resolution of the due diligence process.
The procedures for attempting to satisfactorily collect current and defaulted student loans.
Collection activity carried out by the lender, holder, servicer and/or guarantor of a student loan which is required and proscribed by the federal government. Through this activity, agencies attempt to contact the borrower, his references, employer(s), family, etc. in order to bring a delinquent loan current.
The requirement by law that a holder of abandoned property must attempt to locate the rightful owner before remitting the property to the state.
Review performed by the syndicator of a tax credit project to assess the project's feasibility. Includes information on local approvals, environmental review, project funding, market demand, and capacity and experience of the sponsor.
The requirement that every endeavour is made to establish the facts of a case before deciding a course of action, particularly in identifying the source and history of an item offered for acquisition or use before acquiring it.
The process of reviewing and analysing in detail the capacity of a bidding organisation to meet future contract performance requirements. This may include a detailed assessment of the organisation's financial stability, legal risks, technical capacity, and infrastructure. | | | | | | | J | K | | | | | | | X | Y | Z
Evaluation of the environmental condition of a parcel of land, often as part of a real estate transaction. This is required in order for a purchaser to qualify for federal liability protection as an innocent purchaser. See also Environmental Assessment.
A procedure to determine potential environmental hazards at an operation.
A legal defence which is available during prosecution for an environmental offence.
the process of checking and verifying information contained in a statement (eg. a prospectus) to be released to the public prior to the registration of that statement.
The process of gathering information about the terms and condition of items to be sold.
The process of gathering information about the condition and legal status of assets to be sold.
An examination by the buyer and his legal and financial advisers, to ensure that the information provided by the vendor is true and accurate, and that the vendor has fulfilled all of his legal obligations.
The inquiry process of obtaining sufficient and accurate disclosure of all material documents and other information which may influence the outcome of a transaction.
process of assembling and reviewing project and partnership documents to insure that all statements made by the developer/sponsor are true, that the land, property, and partnership documents are all in order. See Appendix D.
A fair, proper and due degree of care and activity. An expressed or implied condition in certain real estate contracts stating that a person use good-faith efforts to perform obligations under a contract.
The procedures followed by a lending institution in exercising its responsibilities to inform a borrower of his or her rights under a loan program, to notify the borrower, and to conduct and complete collection efforts. Close
the degree of effort required by law that an unclaimed property holder must exert to find the rightful owner before the property is sent to the state. Usually this is in the form of an Owner Notification Letter (RTF 9kb).
A standard which describes the degree of care and attention that a reasonable person would use in a given situation to avoid harming others or their property.
The care that a reasonable person/company exercises under the circumstances to avoid harm to other persons or their property.
A reasonable and expected measure of attention taken for a particular action. Not measurable by an absolute standard, but dependant on the situation.
Meeting with management in which they are available to answer questions asked by securities analysts and institutional investors related to the history and credibility of the company's financial position.
The process of gathering and confirming information about a company and its business, management, and financial affairs.
a control to confirm the background, intentions and reputations of individuals or organizations with whom one plans to establish a business relationship.
Verification of facts about the provider, performed by the Medical Funding company before granting funding.
The verification of information and its documentation given to a factor in order to facilitate a decision as to whether or not a particular invoice should be purchased. Factors always want to take as little risk as possible and want to be assured that the money they advance will be paid back.
Keywords:  eddy, current
Eddy Current
a valuable tool for the seasoned practitioner as well as the neophyte
Keywords:  equity
Keywords:  intent, letter, books, signing, sellers
That period following the signing of a letter of intent that the buyer has access to all the sellers' books and records.
Research and physical inspection that is performed before any lease should be signed.
Keywords:  sale
Keywords:  act, responsibility, another
The act of responsibility to another.