Section 5 - Definition.

Financial debt definition clarifies commercial borrowing and instruments as basis for creditor rights under insolvency process.

Section 5 sets core definitions that shape the corporate insolvency regime: it identifies key actors (Adjudicating Authority, corporate applicant, resolution applicant, resolution professional), temporal markers (initiation date, insolvency commencement date, insolvency resolution process period), and substantive financial constructs. Financial debt is broadly defined to include borrowed money, debt instruments, finance leases, receivables (except non recourse), derivative transactions and guarantee liabilities; financial creditor is any person owed such debt. The section also defines insolvency and liquidation costs, interim finance, operational debt and related party relationships, and clarifies that a resolution plan may include restructuring measures.