The accrued interest that is added to the principal balance of a loan while you are not making payments or your payments are insufficient to cover both the principal and interest due. When this happens, you end up paying interest on interest, sometimes called "negative amortization."
caption
A heading on all pleadings submitted to the court. It states basic information such as the parties names, court and case number.
carryover basis
The tax basis of someone who receives a gift. The recipient's basis is the same as the giver's; it simply "carries over" when the gift is made.
case
A term that most often refers to a lawsuit -- for example, "I filed my small claims case." "Case" also refers to a written decision by a judge -- or for an appellate case, a panel of judges. For example, the U.S. Supreme Court's decision legalizing abortion is commonly referred to as the Roe v. Wade case. Finally, the term also describes the evidence a party submits in support of her position -- for example, "I have made my case" or "'My case-in-chief' has been completed."
cash surrender value
The amount of cash available upon voluntary termination of an insurance policy before the insurance benefits become payable.
cause of action
A specific legal claim -- such as for negligence, breach of contract or medical malpractice -- for which a plaintiff seeks compensation. Each cause of action is divided into discrete elements, all of which must be proved to present a winning case.
census
An official count of the number of people living in a certain area, such as a district, city, county, state, or nation. The United States Constitution requires the federal government to perform a national census every ten years. The census includes information about the respondents' sex, age, family, and social and economic status.
certification mark
A name, symbol, or other device used by an organization to vouch for the quality of products and services provided by others, for example, the "AAA Approved" sign found at hotels.
certification of trust
See abstract of trust.
certified copy
A copy of a document issued by a court or government agency guaranteed to be a true and exact copy of the original. Many agencies and institutions require certified copies of legal documents before permitting certain transactions. For example, a certified copy of a death certificate is required before a bank will release the funds in a deceased person's payable-on-death account to the person who has inherited them.
challenge for cause
A party's request that the judge dismiss a potential juror from serving on a trial jury by providing a valid legal reason why he shouldn't serve. Potential bias is a common reason potential jurors are challenged for cause -- for example, the potential juror is a relative of a party or one of the lawyers, or admits to a prejudice against one party's race or religion. Judges can also dismiss a potential juror for cause. There is no limit on the number of successful challenges for cause. Compare peremptory challenges.
chambers
A fancy word for a judge's office. Trial court judges often schedule pre-trial settlement conferences and other informal meetings in chambers.
charge
A formal accusation of criminal activity. The prosecuting attorney decides on the charges, after reviewing police reports, witness statements and any other evidence of wrongdoing. Formal charges are announced at an arrested person's arraignment.
charitable trust
Any trust designed to make a substantial gift to a charity and also achieve income and estate tax savings for the person who creates the trust (the grantor).
child
(1) A son or daughter of any age, sometimes including biological offspring, unborn children, adopted children, stepchildren, foster children and children born outside of marriage. (2) A person under an age specified by law, often 14 or 16. For example, state law may require a person to be over the age of 14 to make a valid will, or may define the crime of statutory rape as sex with a person under the age of 16. In this sense, a child can be distinguished from a minor, who is a person under the age of 18 in most states. A person below the specified legal age who is married is often considered an adult rather than a child. See also emancipation.
