Merger And Acquisition.docx

Merger And Acquisition The terms merger and acquisition mean slightly different things, though they are often used interchangeably. When one company takes over another and clearly establishes itself as the new owner, the purchase is called an acquisition. From a legal point of view, the target company ceases to exist, the buyer absorbs the business and the buyer's stock continues to be traded while the target company’s stock does not. In the pure sense of the term, a merger happens when two firms, often of about the same size, agree to go forward as a single new company rather than remain separately owned and operated. This kind of action is more precisely referred to as a "merger of equals." Both companies' stocks are surrendered and new company stock is issued in its place. For example, both Daimler-Benz and Chrysler ceased to exist when the two firms merged, and a new company, Daimler Chrysler, was created. A purchase deal will also be called a merger when both CEOs agree that joining together is in the best interest of both of their companies. But when the deal is unfriendly—that is, when the target company does not want to be purchased—it is always regarded as an acquisition. Whether a purchase is considered a merger or an acquisition really depends on whether the purchase is friendly or hostile and how it is announced. In other words, the real difference lies in how the purchase is communicated to and received by the target company's board of directors, employees and shareholders.

Synergy of M & A Synergy is often cited as the force that allows for enhanced cost efficiencies of the new business and a reason to justify the transaction. Synergy takes the form of revenue enhancement and cost savings. By merging, the companies hope to benefit from the following: 

Staff reductions. As every employee knows, mergers tend to mean job losses. Consider all the money saved from reducing the number of staff members from accounting, marketing and other departments. Job cuts will also include the former CEO, who typically leaves with a compensation package. 1



Economies of scale. Yes, size matters. Whether it's purchasing stationery or a new corporate IT system, a bigger company placing the orders can save more on costs. Mergers also translate into improved purchasing power to buy equipment or office supplies. When placing larger orders, companies have a greater ability to negotiate prices with their suppliers.



Acquiring new technology. To stay competitive, companies need to stay on top of technological developments and their business applications. By buying a smaller company with unique technologies, a large company can maintain or develop a competitive edge.



Improved market reach and visibility. Companies buy other companies to reach new markets and grow revenues and earnings. A merger may expand two companies' marketing and distribution, giving them new sales opportunities. A merger can also improve a company's standing in the investment community: bigger firms often have an easier time raising capital than smaller ones.

Achieving synergy is easier said than done. Achieving synergy takes: 

Planning. How will the combined entity actually go about achieving the synergies touted during the process?



Preparation and analysis. Ideally planning is done during the M&A due diligence process to ensure that these synergies are real and what it will take to achieve them after the culmination of the transaction.



Execution. Once the transaction is finalized, critical decisions have to be made. Which operations will be kept or closed? How will you entice key employees to stay? Who will be accountable to see that these synergies are actually realized?

Varieties of Mergers From the perspective of business structures, there is a whole host of different types of mergers. Here are a few types, distinguished by the relationship between the two companies that are merging: 

Horizontal merger - Two companies that are in direct competition and share the same product lines and markets. 2



Vertical merger - A customer and company or a supplier and company. Think of a cone supplier merging with an ice cream maker.



Market-extension merger - Two companies that sell the same products in different markets.



Product-extension merger - Two companies selling different but related products in the same market.



Conglomeration - Two companies that have no common business areas.

There are also two types of mergers that are distinguished by how the merger is financed. Each has certain implications for the companies involved and for investors: 

Purchase Mergers - As the name suggests, this kind of merger occurs when one company purchases another. The purchase is made with cash or through the issue of some kind of debt instrument; the sale is taxable. Acquiring companies often prefer this type of merger because it can provide them with a tax benefit. Acquired assets can be written-up to the actual purchase price, and the difference between the book value and the purchase price of the assets can depreciate annually, reducing taxes payable by the acquiring company. We will discuss this further in part four of this tutorial.



Consolidation Mergers - With this merger, a brand new company is formed and both companies are bought and combined under the new entity. The tax terms are the same as those of a purchase merger.

Acquisitions An acquisition may be only slightly different from a merger. In fact, it may be different in name only. Like mergers, acquisitions are actions through which companies seek economies of scale, efficiencies and enhanced market visibility. Unlike mergers, all acquisitions involve one firm purchasing another — there is no exchange of stock or consolidation as a new company. Acquisitions are often congenial, and all parties feel satisfied with the deal. Other times, acquisitions are more hostile. In an acquisition, a company can buy another company with cash, stock or a combination of the two. Another possibility, which is common in smaller deals, is for one 3

company to acquire all the assets of another company. Company X buys all of Company Y's assets for cash, which means that Company Y will have only cash (and debt, if they had debt before). Of course, Company Y becomes merely a shell and will eventually liquidate or enter another area of business. Another type of acquisition is a reverse merger, a deal that enables a private company to get publicly-listed in a relatively short time period. A reverse merger occurs when a private company that has strong prospects and is eager to raise financing buys a publicly-listed shell company, usually one with no business and limited assets. The private company reverse merges into the public company, and together they become an entirely new public corporation with tradable shares. Regardless of their category or structure, all mergers and acquisitions have one common goal: they are all meant to create synergy that makes the value of the combined companies greater than the sum of the two parts. The success of a merger or acquisition depends on whether this synergy is achieved.

Business Ethics Business

ethics (also

known

as corporate

ethics)

is

a

form

of applied

ethicsor professional ethics, that examines ethical principles and moral or ethical problems that can arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations. [1] These ethics originate from individuals, organizational statements or from the legal system. These norms, values, ethical, and unethical practices are the principles that guide a business. They help those businesses maintain a better connection with their stakeholders.[2] Business ethics refers to contemporary organizational standards, principles, sets of values and norms that govern the actions and behavior of an individual in the business organization.

Business

ethics

have

two

dimensions, normative

business

ethics or descriptive business ethics. As a corporate practice and a career specialization, the field is primarily normative. Academics attempting to understand business behavior employ descriptive methods. The range and quantity of business ethical issues reflects the interaction of profit-maximizing behavior with non-economic concerns. 4

Interest in business ethics accelerated dramatically during the 1980s and 1990s, both within major corporations and within academia. For example, most major corporations today promote their commitment to non-economic values under headings such as ethics codes and social responsibility charters. Adam Smith said, "People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices."[3] Governments use laws and regulations to point business behavior in what they perceive to be beneficial directions. Ethics implicitly regulates areas and details of behavior that lie beyond governmental control. The emergence of large corporations with limited relationships and sensitivity to the communities in which they operate accelerated the development of formal ethics regimes.

Charge Meaning of pari passu charge – Pari-passu is a Latin phrase, which means “equal footing”. Thus pari passu charge means, having equivalent charge/ rights or say charge-holders have equal rights over the asset on which pari pasu charge is created. “Pari Passu” charge means that when borrower company goes into dissolution, the assets over which the charge has been created will be distributed in proportion to the creditors’ (lenders) respective holdings. Let’s understand the pari passu charge in detail. When multiple banks finance to a single borrower under consortium arrangement or multiple banking, there are certain common assets, on which all the lenders share charge. Suppose SBI, BOI and PNB have financed working capital of Rs.25 crore, Rs.50 Crores and 100 Crores each to M/s ABC Ltd. All the three banks will have pari pasu charge on the stocks, debtors and other current assets of M/s ABC Ltd. In case of default SBI, BOI and PNB will have the right to recover the amount from realization of the charged security in the ratio of 1:2:4. Similar to pari passu charge on current assets, as explained above, lenders may share pari passu charge on collateral securities. In consortium, there is always pari passu charge on primary security as well as collateral security. But, in other cases, all the lenders (existing as well as new) must

5

agree for sharing of pari-passu charge on primary securities or collateral securities as the case may. If borrower is a company, charge must be registered with registrar of companies within 30 days from the date of creation of charge. If not registered within 30 days, charge may be registered with ROC within 360 days with payment specified late fee.

Legal Person A legal person (in legal contexts often simply person, less ambiguously legal entity)[1][2] is any human or non-human entity, in other words, any human being, firm, or government agency that is recognized as having privileges and obligations, such as having the ability to enter into contracts, to sue, and to be sued.[3][4][5] The term "legal person" is however ambiguous because it is also used in contradistinction to "natural person", i.e. as a synonym of terms used to refer only to non-human legal entities.[6][7] So there are of two kinds of legal entities, human and non-human: natural persons (also called physical persons) and juridical persons (also called juridic, juristic, artificial, legal, or fictitious persons, Latin: persona ficta), which are other entities (such as corporations) that are treated in law as if they were persons.[4][8][9] While human beings acquire legal personhood when they are born (or even before in some jurisdictions), juridical persons do so when they are incorporatedin accordance with law. Legal personhood is a prerequisite to legal capacity, the ability of any legal person to amend (enter into, transfer, etc.) rights and obligations. In international law, consequently, legal personality is a prerequisite for an international organization to be able to sign international treaties in its own name. Artificial Person Artificial person is an entity created by law and given certain legal rights and duties of a human being. It can be real or imaginary and for the purpose of legal reasoning is treated more or less as a human being. For example, corporation, company etc. An artificial person is also referred to as a fictitious person, juristic person, juridical person, legal person or moral person. 6

Legal entity From Wikipedia, the free encyclopedia Jump to navigationJump to search A legal entity is a legal construct through which the law allows a group of natural persons to act as if they were a single person for certain purposes. The most common purposes are lawsuits, property ownership, and contracts. A legal entity is not always something else than the natural persons of which it is composed as one can see with a companyor corporation. Some examples of legal entities include: 

companies



cooperatives (co-ops)



corporations



municipalities



natural persons



political parties



sovereigns



states



temples, in some legal systems, have separate legal personality[1]



trade unions



ship or vessel

Lien Marked Lein, by definition, refers to the legal capacity bestowed unto a creditor to sell a debtor's property if they are unable to meet payments on a loan. It is essentially used as means of reassurance of security for the creditor. For example, the bank can issue a lein mark on behalf of the creditor, i.e. Freeze the money, until the contractual obligations of the debtors loan have been fulfilled. In other words, the creditor does not lose their money until they are certain that the money can be repaid. This allows them the assurance to carry out loan arrangements.

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This also entitles the bank to seize the property of the debtor, so long as reasonable notice is provided. However, a lein mark is not applicable when a property is in the banks possession for specific reasons, e.g. Temporary placement.

8

Stock Exchange A stock exchange, securities exchange or bourse,[note

1]

is a facility where stock

brokers and traders can buy and sell securities, such as shares of stock and bondsand other financial instruments. Stock exchanges may also provide for facilities the issue and redemption of such securities and instruments and capital events including the payment of income and dividends.[citation

needed]

Securities traded on a stock exchange

include stock issued by listed companies, unit trusts, derivatives, pooled investment products and bonds. Stock exchanges often function as "continuous auction" markets with buyers and sellers consummating transactions via open outcryat a central location such as the floor of the exchange or by using an electronic trading platform.[5] To be able to trade a security on a certain stock exchange, the security must be listedthere. Usually, there is a central location at least for record keeping, but trade is increasingly less linked to a physical place, as modern markets use electronic communication networks, which give them advantages of increased speed and reduced cost of transactions. Trade on an exchange is restricted to brokers who are members of the exchange. In recent years, various other trading venues, such as electronic communication networks, alternative trading systems and "dark pools" have taken much of the trading activity away from traditional stock exchanges.[6] Initial public offerings of stocks and bonds to investors is done in the primary marketand subsequent trading is done in the secondary market. A stock exchange is often the most important component of a stock market. Supply and demand in stock markets are driven by various factors that, as in all free markets, affect the price of stocks (see stock valuation). There is usually no obligation for stock to be issued through the stock exchange itself, nor must stock be subsequently traded on an exchange. Such trading may be off exchange or over-the-counter. This is the usual way that derivatives and bonds are traded. Increasingly, stock exchanges are part of a global securities market. Stock exchanges also serve an economic function in providing liquidity to shareholders in providing an efficient means of disposing of shares.

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Ownership is the state or fact of exclusive rights and control over property, which may be an object, land/real estate or intellectual property. Ownership involves multiple rights, collectively referred to as title, which may be separated and held by different parties. The process and mechanics of ownership are fairly complex: one can gain, transfer, and lose ownership of property in a number of ways. To acquire property one can purchase it with money, trade it for other property, win it in a bet, receive it as a gift, inherit it, find it, receive it as damages, earn it by doing work or performing services, make it, or homestead it. One can transfer or lose ownership of property by selling it for money, exchanging it for other property, giving it as a gift, misplacing it, or

having

it

stripped

from

one's

ownership

through

legal

means

such

as eviction, foreclosure, seizure, or taking. Ownership is self-propagating in that the owner of any property will also own the economic benefits of that property.

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Pages in category "Companies listed on the Pakistan Stock Exchange" The following 70 pages are in this category, out of 70 total. This list may not reflect recent changes

A 

Allied Bank Limited



Amreli Steels



Askari Bank



At-Tahur Limited



Atlas Honda



Attock Group



Attock Petroleum Limited



Attock Refinery Limited

B 

Bank Al Habib



Bank Alfalah

C 

Chenab Group

D 

Dawood Hercules Chemicals Limited



Dawood Hercules Corporation Limited

E 

Engro Corporation



Engro Foods

F 

Fauji Fertilizer Company 11



Faysal Bank

G 

GlaxoSmithKline Pakistan

H 

Hashoo Group



HBL Pakistan



Hub Power Company



Hum Network

I 

ICI Pakistan



Indus Motors Company



International Steels Limited



Ittefaq Iron Industries

J 

JS Group

K 

K-Electric



Kot Addu Power Company

L 

Lakson Group



Lalpir Power



Lucky Cement

M 

Mari Petroleum Company



Masood Textile Mills 12



MCB Bank Limited



Meezan Bank



Mitchell's



Mughal Steel



Murree Brewery



MyBank (Pakistan)

N 

Nagina Group



National Bank of Pakistan



National Foods Limited



National Refinery Limited



Nishat Group

O 

Oil and Gas Development Company

P 

Pace Shopping Mall



Packages Limited



Pak Datacom



Pak Suzuki Motors



Pakistan Oilfields Limited



Pakistan Petroleum



Pakistan State Oil



Pakistan Tobacco Company



Pearl-Continental Hotels & Resorts



PEL (Pakistan)



PICIC Commercial Bank



Ptcl

13

S 

Saif Group



Sapphire Group



Shell Pakistan



Siemens Pakistan



Soneri Bank



Standard Chartered Pakistan



Sui Northern Gas Pipelines Limited



Sui Southern Gas Company



Summit Bank

T 

Treet Corporation

U 

Unilever Pakistan Limited



United Bank (Pakistan)

Collective security Collective security can be understood as a security arrangement, political, regional, or global, in which each state in the system accepts that the security of one is the concern of all, and therefore commits to a collective response to threats to, and breaches to peace.

Collective

security

is

more

ambitious

than

systems

of alliance

security or collective defense in that it seeks to encompass the totality of states within a region or indeed globally, and to address a wide range of possible threats. While collective security is an idea with a long history, its implementation in practice has proved problematic. Several prerequisites have to be met for it to have a chance of working. It is the theory or practice of states pledging to defend one another in order to deter aggression or to exterminate transgressor if international order has been breached.[1] 14

15

Sister Concern Companies A sister company is a business that has the same parent company as another business. The two companies may operate completely separately and only be related to each other because they are siblings – they share the same parent. Put simply, sister companies are subsidiaries (daughter companies) of the same company. The Fox News Channel (Fox News), a US cable and satellite news television channel, has the same parent company (21st Century Fox) as Britain’s Sky News – making the two of them sister companies. Fox News’ other sister channels are Fox Business Network, Fox Broadcasting Company, Sky News Australia and Sky TG24.

At the time of writing the American multinational media giant Time Warner Inc. has several subsidiary companies. They are all sister companies. Sister companies may be quite different Sister companies may not necessarily operate in the same business sectors. Their activities and products may be completely different. Berkshire Hathaway Inc., which is led by multi-billionaire Warren Buffett, is the parent company of Exxon Mobil (oil & gas), Coca-Cola (soft drinks), and American Express (financial services). Sometimes, sister companies may appear to be arch-rivals in a specific industry, but are owned by the same parent company. ConocoPhillips and Exxon Mobil, for example, compete aggressively in the oil & gas markets, but are both owned by Berkshire Hathaway Inc. British multinational Virgin Group Ltd., which was founded by billionaire mogul Richard Branson and Nik Powell, today consists of more than 400 sister companies that operate in several sectors, such as telecommunications, media, food & drink, healthcare, transport and financial services.

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Contract Definition An

agreement

between

private

parties

creating

mutual

obligations

enforceable by law. The basic elements required for the agreement to be a legally enforceable contract are: mutual assent, expressed by a valid offer and acceptance; adequate consideration; capacity; and legality.

In some

states, element of consideration can be satisfied by a valid substitute. Possible

remedies

damages, consequential

for breach

of

damages, reliance

contract include general damages,

and specific

performance. Overview Contracts are promises that the law will enforce. Contract law is generally governed by the state Common Law, and while general overall contract law is common throughout the country, some specific court interpretations of a particular element of the Contract may vary between the states. If a promise is breached, the law provides remedies to the harmed party, often in form of monetary damages, or in limited circumstances, in the form of specific performance of the promise made. Elements -- Consideration and mutal assent Contracts arise when a duty comes into existence, because of a promise made by one of the parties. To be legally binding as a contract, a promise must be exchanged for adequate consideration.

There are two different

theories or definitions of consideration: Bargain Theory of Consideration and Benefit-Detriment theory of consideration. 1) Under the Benefit-Detriment theory, an adequate consideration exists only when a promise made to the benefit of the promisor or to the detriment of the promisee, which reasonably and fairly induces the promisor to make a promise for something else for the promisee. For example, promises that are purely gifts are not

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considered enforceable because the personal satisfaction the grantor of the promise may receive from the act of generosity is normally not considered sufficient 2)

detriment

to

constitute

Under Bargain-for-Exchange

theory of

adequate

consideration.

consideration,

adequate

consideration exists when a promisor makes a promise in return for something else. Here, the essential condition is that the promisor was given something specifically to induce the promise being made. In other words, the Bargain for Exchange theory is different from the detriment-benefit theory in that the focus in bargain for exchange theory seems to be the parties’ motive for making the promises and the parties’ subjective mutual assent, while in detriment benefit theory, the focus seems to be an objective legal detriment or benefit to the parties. Governing Laws Contracts are mainly governed by state statutory and common (judgemade) law and private law (i.e. the private agreement). Private law principally includes the terms of the agreement between the parties who are exchanging promises. This private law may override many of the rules otherwise established by state law. Statutory law, such as the Statute of Fraud, may require some kinds of contracts be put in writing and executed with particular formalities, for the contract to be enforceable. Otherwise, the parties may enter into a binding agreement without signing a formal written document. For example, Virginia Supreme Court has held in Lucy v. Zehmer that even an agreement made on a piece of napkin can be considered a valid contract, if the parties were both sane, and showed mutual assent and consideration. Most of the principles of the common law of contracts are outlined in the Restatement of the Law Second, Contracts, published by the American Law Institute. The Uniform Commercial Code, whose original articles have been adopted in nearly every state, represents a body of statutory law that

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governs important categories of contracts. The main articles that deal with the law of contracts are Article 1 (General Provisions) and Article 2 (Sales). Sections of Article 9 (Secured Transactions) govern contracts assigning the rights to payment in security interest agreements. Contracts related to particular activities or business sectors may be highly regulated by state and/or federal law. See Law Relating To Other Topics Dealing with Particular Activities or Business Sectors. In 1988, the United States joined the United Nations Convention on Contracts for the International Sale of Goods which now governs contracts within its scope. Remedies for Breach of Contract -- Damages If the agreement does not meet the legal requirements to be considered a valid contract, the “contractual agreement” will not be enforced by the law, and the breaching party will not need to indemnify the non-breaching party. That is, the plaintiff (non-breaching party) in a contractual dispute suing the breaching party may only win Expectation Damages when they are able to show that the alleged contractual agreement actually existed and was a valid and enforceable contract.

In such case, expectation damages will be

rewarded, which attempts to make the non-breaching party whole, by awarding the amount of money that the party would have made had there not been a breach in the agreement plus any reasonably foreseeable consequential damages suffered as a result of the breach. However, it is important to note that there is no punitive damages for contractual remedies, and the non-breaching party may not be awarded more than the expectancy (monetary value of the contract, had it been fully performed). However, in certain circumstances, certain promises that are not considered contracts may be enforced to a limited extent.

If one party has made

reasonable reliance to his detriment on the assurances/promises of the other party, the court may apply an equitable doctrine of Promissory Estoppel to award the non-breaching party a Reliance damages to compensate the party

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for the amount suffered as a result of the party’s reasonable reliance on the agreement. In another circumstance, the court may award Unjust Enrichment to a party, if the party who confers a benefit on another party, if it would be unjust for the party receiving the benefit to keep it without paying for it. Finally, one modern concern that has risen in the contract law is the increasing use of a special type of contract known as "Contracts of Adhesion" or form-contracts. This type of contract may be beneficial for some parties, because of the convenience and the ability by the strong party in a case to force the terms of the contract to a weaker party.

Examples include

mortgage agreements, lease agreements, online purchase or sign-up agreements, etc. In some cases, courts look at these adhesion contracts with a special scrutiny due to the possibility of unequal bargaining power, unfairness, and uncon scionability.

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Bull Is Market A bull market is the condition of a financial market of a group of securities in which prices are rising or are expected to rise. The term "bull market" is most often used to refer to the stock market but can be applied to anything that is traded, such as bonds, real estate, currencies and commodities. Because prices of securities rise and fall essentially continuously during trading, the term "bull market" is typically reserved for extended periods in which a large portion of security prices are rising. Bull markets tend to last for months or even years. Understanding Bull Markets Bull markets are characterized by optimism, investor confidence and expectations that strong results should continue for an extended period of time. It is difficult to predict consistently when the trends in the market might change. Part of the difficulty is that psychological effects and speculation may sometimes play a large role in the markets. There is no specific and universal metric used to identify a bull market. Nonetheless, perhaps the most common definition of a bull market is a situation in which stock prices rise by 20%, usually after a drop of 20% and before a second 20% decline.Since bull markets are difficult to predict, analysts can typically only recognize this phenomenon after it has happened. A notable bull market in recent history was the period between 2003 and 2007. During this time, the S&P 500 increased by a significant margin after a previous decline; as the 2008 financial crisis took effect, major declines occurred again after the bull market run. Characteristics of a Bull Market Bull markets generally take place when the economy is strengthening or when it is already strong. They tend to happen in line with strong gross domestic product (GDP)and a drop in unemployment and will often coincide with a rise in corporate profits. Investor confidence will also tend to climb throughout a bull market period. The overall demand for stocks will be positive, along with the overall tone of the market. In addition, there will be a general increase in the amount of IPO activity during bull markets.

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Notably, some of the factors above are more easily quantifiable than others. While corporate profits and unemployment are quantifiable, it can be more difficult to gauge the general tone of market commentary, for instance. Supply and demand for securities will seesaw: supply will be weak while demand will be strong. Investors will be eager to buy securities, while few will be willing to sell. In a bull market, investors are more willing to take part in the (stock) market in order to gain profits.

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Financial law Financial law is the law and regulation of the insurance, derivatives, commercial banking, capital markets and investment management sectors. [1]Understanding Financial

law

is

crucial

to

appreciating

the

creation

and

formation

of banking and financial regulation, as well as the legal framework for financegenerally. Financial law forms a substantial portion of commercial law, and notably a substantial proportion of the global economy, and legal billables are dependent on sound and clear legal

policy

pertaining

to

financial

transactions.[2][3][4] Understanding

the

legal

implications of transactions and structures such as an indemnity, or overdraft is crucial to appreciating their effect in financial transactions. This is the core of Financial law. Thus, Financial law draws a narrower distinction than commercial or corporate law by focusing primarily on financial transactions, the financial market, and its participants; for example, the sale of goods may be part of commercial law but is not financial law. Financial law may be understood as being formed of three overarching methods, or pillars of law formation and categorised into five transaction siloswhich form the various financial positions prevalent in finance. For the regulation of the financial markets, see Financial regulation which is distinguished from financial law in that regulation sets out the guidelines, framework and participatory rules of the financial markets, their stability and protection of consumers; whereas financial law describes the law pertaining to all aspects of finance, including the law which controls party behaviour in which financial regulation forms an aspect of that law.

Date of Maturity Date on which a contractual agreement, financial instrument, guaranty, insurance policy, loan, or offer becomes due for settlement. Also called redemption date for investments.

Used

also

as

a

synonym

for

settlement

date.

Maturity is a term subject to different meanings, but in a commercial paper context, it refers to the date on which a negotiable instrument, such as a promissory note or bill of exchange, becomes due and payable. The maturity date is when the legal right to 23

enforce payment of the obligation becomes vested.Sometimes a note states that failure to pay interest or installment payments when due "accelerates" the note. In such a case, the acceleration makes the "maturity date" immediate if such payments are demanded and not paid.

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