What is the definition of 'Alien Enemy'?

The definition of ‘Alien Enemy’ refers specifically to a foreign national who is residing in a country that is at war with their home country. In this context, the term underscores the legal status of individuals from countries engaged in conflict with the host nation, highlighting the potential restrictions and legal implications that may arise as a result of wartime relations. Such individuals may face limitations on their rights and freedoms, including restrictions on property ownership, movement, and engagement in certain activities deemed sensitive during wartime.

The other choices do not accurately represent the definition of 'Alien Enemy.' A foreigner during peace with the host country does not pose a conflict, thus not fitting the term. A legal entity created by a Special Act pertains to established organizations or corporations and has no relation to the concept of enemies. Finally, a person unable to pay debts reflects a financial status rather than a political or legal designation. This distinction clarifies why the correct answer is focused specifically on the relationship between foreign nationals and their native countries during periods of conflict.