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Simple English definitions for legal terms
fixed liability
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A quick definition of fixed liability:
Fixed liability refers to a type of debt that is permanent and usually evidenced by a bond or debenture. It is a long-term debt that will not come due within the next year. This type of debt is different from short-term debt, which is continuously renewed to finance the ongoing operations of a business or government. Fixed liability is a specific sum of money due by agreement or otherwise, and it is legally payable from general revenues and backed by the full faith and credit of the governmental body.A more thorough explanation:
Fixed liability refers to a type of debt that is permanent and usually evidenced by a bond or debenture. It is a long-term debt that will not come due within the next year.
For example, a company may issue bonds to raise money for a new project. The bondholders are owed a fixed amount of money, which is the fixed liability of the company.
Another example is a mortgage, which is a fixed liability for the homeowner. The homeowner owes a fixed amount of money to the lender over a long period of time.