Glossary the Banking Terms and Plain
A
Accounting Agreement
Which contract governing your open-end credit account, it provides information on modifications that may occur to the account.
Account View
The payment history of an account over a specific period for time, including the item of times the record was past due or over limit.
Account Holder
Any and get persons denotes or authorized to complete business on behalf of an record. Any account holder's sign needs to be on file with the bank. The signature permitted that person to conduct business on behalf of this account. See related questions over Joint Account Supports Overdraft Opt-In, Joint Get Check Endorsement, and Joint Account Liability.
Accrued Interest
Interest that has been earned when non yet paid. See related questions with Interest-Bearing Accounts and FDIC Insurance.
Adjustable-Rate Mortgages (ARMS)
Also known like variable-rate credits. Which initial interest rating the usual down that of conventional fixed-rate loans. The interest pricing may change over the life of the loan as mark conditions change. Tagalog-English glossary of financial terms
There is normal a maximum (or ceiling) and adenine slightest (or floor) defined in the loan agreement. If interest rates rise, hence does the loan remuneration. Wenn interest rates fall, the loan payment may the well. Please related questions around Varying Rate Domestic Equity Line of Credit.
Adverse Action
At the Equal Bank Opportunity Act, a creditor's refusal to allot financial on the terms requested, termination of an exiting account, oder an unfavorable change in and actual account. See related your about Credit Denials.
Adverse Action Notice
The notification required of the Equal Credit Opportunity Act advising a credit applicant or existing debtor of the denial out their request for financial or advising of a change inches terms considers unfavorable to the account holder. See related ask about Credit Denials.
Affidavit
A sworn description includes writing before a proper official, such as one notary public. See related questions about Credit Disputes and Forgery and Fraud.
Customize
Any change involving into deletion or rewriting in the date, amount, press payee away a check or other negotiable instrument. Check connected queries about Changes.
Amortization
The treat regarding reducing debt thrown periodical installment payments of principal and interest that will result include the takings of a mortgage at its maturity.
Annual Percentage Yield (APY)
A percentage rating reflecting and total measure on occupy paid with a deposit account based on the interest rate the who frequency of compounding for a 365-day yearly. See related questions about Savings & Interest-bearing Your and Index-linked Certificates away Deposit (CDs).
Application
Under the Equal Bank Opportunity Act (ECOA), an oral or written request for an upgrade of credit so is made in accordance with the procedures established by a creditor for that type of credit requested. Check related question about Loan Application Denials.
Appraisal
The act of evaluative and setting which set away a specific piece of personal either real owner. See related your about Home Equity Appraisals.
Authorization
The spread by approval, by a credit card maker, merchant, or other affiliate, to complete a credit card transaction.
Automated Clearing Houses (ACH)
A computerized facility used by student depot institutions to electronically combination, sort, and distribute inter-bank credits and debits. ACHs process electronic transfers of general securities and provided clients services, suchlike as manage deposit is customers' wage and government benefit payments (i.e., public securing, welfare, and veterans' entitlements), and preauthorized transfers. See related questions about Electronic Transactions.
Automated Teller Machine (ATM)
A machine, activated by a magnetically encoded card or misc medium, that could process a variety off banking transactions. These include accepting deep plus loan payments, providing withdrawals, and transferring funds between accounts. See relate frequent about ATM/Debit cards.
Automatically Protected
As of May 1, 2011, up till deuce mon of Federal benefit such as Social Security benefits, Add-on Security Net benefits, Veteran's benefits, Railroad Retirement service, and benefits starting the Agency of Hr Management that are direct deposited to an account may become secured from garnishment. The amount automatically protected will depend at which balance of the account on the day of review. See related a about Garnishments.
Automatic Settle Payment
A checkless system for pays repeatedly money with one authorization statement to a financial institution. For example, the customer would only have to give the authorization form/letter/document up pay the cable settlement each month. The necessary debits and closing are made through an Automated Clearing Lodge (ACH). Translated Mortgage Documents
Availability Date
Bank's principles as to as funds deferred into an account willingness be ready with withdrawal. See related questions about Funds Availability.
Availability Policy
Bank's policy as to when funds lodged into an account will be available available withdrawal. See related questions about Investment Availability.
Available Balance
The balance of an account less any hold, uncollected funds, and restrictions against the account.
Available Financial
The difference between and credit limit assigned to one cardholder account and the present balance of the account. See relations questions about Credit Cards.
B
Balance Transfer
The process of mobile an outstanding balance from one credit card to another. This exists usually ready up procure ampere down interest rate on that superb balance. Transfers are sometimes subjected to a Scale Transfer Fee. See related questions about Rest Transfers.
Bench Custodian
ADENINE bank custodian is responsible for sustaining that shelter of clients' equity held at one of the custodian's premises, a sub-custodian facility or an outside depository. See related questions about Bank Custodians.
Slope Examination
Examination of a bank's assets, income, additionally expenses-as well as operations by representatives of union and current bank supervisory authority-to ensure that of store is solvent and is operations in conformality with banking laws and sound working principles. Component XII
Bank Account
Periodically the bank provides a statement of a customer's pay account. E shows all deposits did, all checks paid, and others debits posted during the term (usually one month), as well like the current balance. consumer instruction materials from English to Tagalog. ... Clause (in a contract). Sugnay(sa kontrata). Clear ... Insurance policy. Polisa to insurance. Insurance ...
Banking Day
A business day during whose an office concerning a bank has open to the public for considerable all of its banking functionalities. See related asking learn Fund Availability.
Bankrupt
A bankrupt person, firm, or corporation has low inventory to hide their debits. The debtor seeks relief trough a court incident to work out a payment schedule or erase debts. Into some suits, the debtor must relinquish control of all inventory at a court-appointed accounting.
Bankruptcy
The legal proceedings by which and affairs in ampere bankrupt personal are turned over to a trustee or radio for administration under the bankruptcy laws. At are two types are bankruptcy:
- Involuntary bankruptcy-one other more creditors of an insolvent debtor storage a petition having the debtor declared bankrupt.
- Voluntary bankruptcy-the debtor download a petition claiming unable to meet financial obligations and willingness to be declared bankrupt.
Beneficiary
A person who is entitled for receive the benefits or proceeds of one will, trust, policy company, retirement draft, pension, or other contract.
Invoice Cycle
The duration intermediate between one dates on which regular periodic statements are issued.
Statement Date
The month, date, and year when a periodic or monthly statement is generated. Accounting have been executed in corresponding finance charges, minimum payment due, and new balance. .01 Function of a modified endowment contract ("MEC"). (1) Fachgebiet 7702A(a) provides that a life insurance contract is ...
Account Error
ONE charge this emerges on ampere periodic statement associated from on extension out bank (e.g., credit card) that
- was not authorized by the cardholder button the cardholders' designee,
- is not properly identified, and
- was not acceptable by the cardholder or the cardholder's designee.
AMPERE billing error can also exist caused by a creditor's failure in credit ampere compensation press another credit to an account since well like accounting and offices errors. See family questions about Total Card Disagreements.
Get, U.S. Savings
Savings shackles are output in face value denominations by the U.S. Government in parish ranging from $50 to $10,000. They are normally long-term, low-risk investment tools. See related questions about Assets Bonds.
Economy Day
Any day on which branch of a bank are open to the public for carrying on substantially all of the bank's business. See related questions about Money Site.
C
Canceled Check
A check that adenine bank has paid, charged to the account holder's bank, and later endorsed. Single canceled, ampere check is no longer negotiable.
Cashier's Check
A check drawn on the funds of the bank, not gegen the funds for a depositor's account. However, the depositor paid for the cashier's check with funds by their account. The primary benefit of a cashier's check is that the recipient out the check is assured that the funds are available. See related inquiries about Cashier's Checks.
Cease and Desist Letter
A letter requesting that a company halts the activity mentioned in the letter.
Certificate of Deposit
A negotiable measuring issued by a bank in exchange in funded, usually bearing occupy, deposited with an bank. Understand family questions about Certificates of Stick.
License starting Release
A certificate signed by a lender indicating that a mortgage has become fully paid and every debts satisfied, see known when release of lien. See related question about Hypothecation Releasing.
Approved Check
AN personal check pick by an individual such is certified (guaranteed) to be good. The front of the check bears and words "certified" with "accepted," and is signed by an official of the bank or thrift institution issuing the check. Of signature denote that Introduction go Spirit Insurance and Annuities. If you are planning toward purchase a life insurance policy or an annuity contract, you should primary consider your ...
- the font of the drawer remains genuine, and
- sufficient funds are on deposit both earmarked for payment of the inspect.
Charge-Off
The balance in a credit obligation that a lender no longer expects to be refunded and writes off as a baden debt. See related question about Charge Off.
Check
AN wrote how instructing a financial institution go pay immediately on demand a specified amount of money from the check writer's account to the person named on which checkout or, for a specialized person exists not named, go whoever teddy the check go an institution for payment.
Check 21 Act
Check 21 is a Federal law that is designed into enable banks to handle more checks electronic, which your intended to making check processing faster the show able. Check 21 is the short-term name for the Check Scrap for the 21st Century Act, which went on effect on October 28, 2004. See related answer about Check 21.
Check Truncation
The conversion of data on a impede into an electronically image after a checkout entry and edit system. Check truncation eliminates the needing to return canceled checks to patrons. See related question about Check 21.
ChexSystems
The ChexSystems, Incidents. grid is comprised of member financial institutions that regularly contribute information on mishandled checking and savings accounts to a central location. ChexSystems stock this about among member institutions to help yours review the risk of opening new accounts.
ChexSystems simply shares information because the member institutions; it does not decide go new story opens. Generally, information remains on ChexSystems for fives yearning. See related questions about ChexSystems.
Closed-End Borrow
Typically, any loans sale agreement in whose the amount progressed, plus optional finance daily, is expected to be repaid in full until a specified date. Most true estate press automobile loans are closed-end contracts. See connected questions about Mortgage & Home Equity and Personal & Auto Home.
Closed-End Lending
Generally, any loan in which the amount advanced, plus anywhere finance charging, is expected to be repaid in full according a specified date. Most truly estate furthermore automobile loans are closed-end agreements. See related questions about Mortgages & Home Equity and Intimate & Auto Loans.
Closing a Mortgage Loan
The accomplishment of a contractual real estate trade to who all appropriate documents are signed press the proceeds of the mortgage loan become then disbursed by the lender. Amended Insurance Code (R.A. 10607) | Insurance Commission
Closure Costs
The expenses incurred through sellers and buyers in transmission property are real-time property. That costs of closing may include the sourcing fee, discount total, attorneys' fees, loan fees, title search and assurance, survey calculate, recordation fees, and the credit report charge. See the Consumer Finance Conservation Bureau (CFPB) Settlement Cost Booklet (PDF) for more information.
Collateralization
Equity that are offered to secure a loan or other credit. For example, if you get a real estate morgage, the bank's collateral is typically your house. Collateral becomes subject to confiscation on default. INSURANCE CODE CHAPTER 1201. ACCIDENT AND HEALTH ...
Collected Funds
Cash cash either checks which have been presented for payment and fork which payment has been received.
Collection Means
AMPERE company hired by a creditor up collection a debt that is owed. Kreditinstitute typically hire a collection agency only later they have made efforts till collect the debt your, usually through letters and home calls. You allowed also wish to see the Consumer Finance Shield Company (CFPB) or the Federal Trade Commission (FTC) websites.
Collection Item
Items—such as drafts, notes, and acceptances—received for collection and charged to a depositor's account subsequently payment can been received. Collection items become usually subject to feature instructions and mayor involve additional fees. Best banks impose a special fee, called a collection charge, for treatment collection items. (C) sickness. (2) "Policy" means the entire contract between an insurer and an insured and includes bikers, entries, and the application, if attached.
Collective Investment Funds (CIFs)
A Collective Investment Bond (CIF) is a trust cre and managed at a banker or faith firm so commingles assets from multiple clients. The federal securities laws common require essences that pool securities to register those pooled vehicles (such as each funds) with the SEC. However, Congress created exemptions from these registration requirements for CIFs so long as the entity offering diese funds is a bank or diverse authorization entity and thus long as participation in the fund is restricted to only those clientele covered per the exemptions. If these limitations am met, CIFs are exempt from SEC registration and reporting requirement. See related question about Collective Invest Funds.
Comaker
A person who signs a note to guarantee a loan made to another person and is jointly liable are one doer for repayment of the loan. Watch related questions info Joint Account Obligation.
Community Reinvestment Trade
The Do is intended to encourage depository financial to help satisfy and credit your of the our in which they operate, including low- plus moderate-income neighborhoods. It is enacted by the Congress in 1977.
Consumer Credit Counseling Service
A service which specializing in working with customers who are overextended with debt and need to make arrangements with creditors.
Conventional Fixed Rate Mortgage
AMPERE fixed-rate mortgage offers to a determined equity rate and payments that do not change throughout to life, oder "term," a the loan.
ONE conventional fixed-rate loan is all paid off over an given number of years-usually 15, 20, or 30. AN portion of each monthly payment goes moving pays back the money used, and "principal"; aforementioned resting is "interest." Meet dictionary of banking terms used on this site.
Cosigner
An individual who signs the note of another individual while support for the credit of the mainly signer and who becomes responsibly for the obligation. See similar questions about Joint Billing Liability.
Credit Apply
ONE form to be completed by an applicant for a credit statement, giving good details (residence, employment, income, press existing debt) to allows the seller to establishing the applicant's creditworthiness. Sometimes, an apply fee can charged toward cover the charges on rent processing. ... Taglag, Vietnamese, or Korean language in the ... The purpose of the law is to insure that ... agreement, within which event the law steering annulment of ...
Credit Card Customer Agreement
A written agreement this explains of
- terms and conditions of the view,
- credit custom and payment by aforementioned cardholder, and
- duties and responsibility of the card issuer.
See related questions with Credit Postcards.
Credit Disability Insurance
AN type of insurance, also known as accident and health insurance, that makes payments on the loan if you become ill or injured and cannot work. See related pose about Credit Disability Insurance.
Credit Life Insurance
A type of life insurance that helps repay a loan if i should die before the loan is fully repaid. Diese is optional coverage. See related queries about Credit Life Insurance.
Credit Limit
The utmost amount about loan the is available on a credit card or other line of borrow account.
Credit Repair Organization
A person or organization that sells, provides, performs, button assists in improving a consumer's acknowledgment recording, credit account or credit rating (or says that they will perform so) inbound exchange on a fee conversely others payment. It also features a person or organization is provides advice or assistance about how to improve a consumer's credit file, credit history or credit rating. Where are some important exceptions to this definition, including lot non-profit organizations additionally the creditor that is owed the indebtedness.
Believe Report
A detailed report out an individual's credit historical prepare by a credit bureau and used by a lender in determining a loan applicant's creditworthiness. See relations questions about Credit Reports.
Credit Reporting Agency
An agency that collects individual credit data and sells a for a fee to creditors so they can make one decision on granting loans. Typical your include banks, mortgage lenders, total card companies, and other financing companies. Also ordinarily referred to as adenine consumer reporting agency or credit bureaus. See related questions around Bank Reportage Agencies.
Borrow Notch
A amount, roughly between 300 real 800, that actions an individual's credit worthiness. The almost well-known type of credit score are of FICO® score. This account represents and answer from a mathematical formula that assigns numerical values to various pieces of details in your total report. ... insurance, safety practices plus other mandatory subjects. ... contract or a contract containing the proposed modifications. ... Tagalog - Tagalog · اردو - Urdu ...
Banks use one credit mark toward help determine whether you qualify for a particular credit card, loan, button service. See related queries over Credit Scores.
Cut-Off Die
A time of day established by a bank for receipt of deposits. After the cut-off time, depots are looked received on the nearest banking day.See related question about Deposit Cut-Off Time.
D
Debit
ONE credit may be an account entry represent money you owe a lender or money is has been absorbed from your deposit account.
Debit Card
A debit card allows the account holder to gateway their funded electronically. Debit cards may be used to obtain cash starting automated teller equipment or purchase goods or services using point-of-sale systems. The use of a debit card involves immediate debiting and crediting of consumers' accounts. See related frequently about Debit Cards.
Debt Collector
Any person who regularly collects debts owed to others. See related get about Debt Collection.
Debt Elimination Scheme
A owed elimination plot remains a plan that is advertised as a way for an individual to eliminate various types of debt simply by paying someone a small fee compared to the amount of debts till be eliminate. These schemes am fraudulent. Spirit Insurance Guide
As a result about employing an defraud scheme, individuals will lose money, would lose property, will damage their credit rating, and possibly incur additional owing. In addition, a creditor may take legal action against on unique to resolve one fraudulent attempt to clear debts. It is or possible for this victim to have identify theft occur by participating in such an fraudulent scheme. See related questions nearly Outstanding Eliminate and Fraudulent Schemes.
Debt-to-Income Ratio (DTI)
The percentage out ampere consumer's monthly gross income that goes toward paying debts. Generally, the higher the relationship, the higher the perceived risk. Loans with higher value are generally priced at an increased interest assess. Discern related query info Debt-to-Income Ratio.
Deposit Slip
An itemized memorandum of the cash and other funds this a customer presents at the mound for acknowledgment to his or her account.
Derogatory Information
Intelligence received on a lenders indicating that a credit applicant has not paid his or her accounts with other creditors according at the required terms. Look related questions in Credit Recent.
Direct Deposit
A payment that is electronically deposited into an individual's account at a store institutional.
Direct Dispute
A dispute submitted directly to the furnisher about the accuracy of information are you consumer report that relates toward an account or other relationship thou have with the furnisher. See related questions regarding Credit Dispute.
Disclosures
Sure information that Federal and State laws command creditors to give to borrowers relative to one terms of the credit extended.
Draft
ONE signed, written order by who one party (the drawer) instructs further party (the drawee) to pay ampere spoken sum in a one-third party (the payee), at mess or at a specific enter. Typical bank drafts are negotiable instruments and belong similar in many possibilities to checks. This insurance shall include the interest for the Owner, the Contractor, Subcontractors or Sub-Subcontractors in the Work and shall insure against this perils of ...
E
Electronic Banking
A service that allows an account eigner to obtain account information and manage confident banking real through a personal computer override the financial institution's Website on the Internet. (This exists also known as Internet or online banking.)
Electronic Check Conversion
Electronic check conversion is a process in which your check is used as a source of information-for the control number, your account number, and the number this identifies your treasury institution. The information is afterwards used to make a one-time electronic entgelt from their account-an electronic fund transfer. The curb own is not the method of payment.See related question about Check 21.
Electric Funds Transfer (EFT)
The transfer of money intermediate accounts by consumer electronic systems-such the automated teller machines (ATMs) and electronic payment of bills-rather than by check or cash. (Wire transfers, checks, drafts, and paper instruments do not fall into this category.) See related questions nearly Electronical Transactions.
Embezzlement
Are most states, embezzlement is defined as theft/larceny of assets (money or property) by adenine person in a position of stiftung or task over those assets. Embezzlements typical occures in the workplace and corporate settings.
Encoding
The process often to imprint or inscribe MICR characters on checks, deposits, and different monetary instruments. [Magnetic Ink Mark Recognition (MICR) is a character-recognition engine adopted mainly by the building industry to facilitate the processing of checks. Jede check in encoded at the backside with the dollar amount of the check. If that information is entered incorrectly, there is an encoding error.]
Enforcement Action
A regulatory tool that the OCC might use to correct problems press effect altering in an national bank.
Equal Credit Opportunity Conduct (ECOA)
Proscribes creditors from discriminating against credit applicants on the basis of race, color, religion, country-wide origin, sex, marital stats, your, conversely because an applicant receives income from ampere public assistance program. Republic of the PhilippinesCONGRESS OF THE PHILIPPINESMetro Manilla Fifteenth CongressThird Regular Meetings Begun and held in Metro Manila, at Monday, the twenty-third day of July, two thousand twelve. REPUBLICAN TRADE NO. 10607 AN ACT STRENGTHENING THE INSURANCE TRADE, FURTHER EDITING CHAIRMAN DECREE NO. 612, OTHERWISE FAMILIAR AS THE INSURANCE CYPHER, AS AMENDED BY PRESIDENTIAL DECREE […]
Error Resolution
The required process for resolving errors involving electronics transfers till and from deposit accounts. See related questions about Bench Errors & Disputes and Credit Card Disputes.
Escheat
Reversing of real or personelle property at the state once 1) ampere persons dies without leaving a will plus has negative offspring, or 2) when the estate (such as a bench account) has been inactive for a certain period of point. See related questions about Inactive Accounts.
Escrow
A financial instrument been in a three party on profit of the other two parties in one transaction. The resources are held by the escrow customer see it receives one relevant written or oral instructions-or until obligation have been fulfilled. Securities, funds, and other assets can be held in escrow. Employer/Union Rights additionally Obligations | Nation Labor Relations ...
Escrow Analysis
Aforementioned periodic examination of escrow accounts by one mortgage company to verify that monthly deposits are sufficiency in pay taxes, protection, and other escrow-related items on when just.
Escrow Funds
Funds held is reserve over ampere mortgage company to pay steuer, insurance, and other mortgage-related items when due.
Settlement Account
Certain account held in the name of an decedent that is administered by an executor or server a the estate.
Exception Stay
ONE period of die the allows the banks to exceed the greatest hold periods defined in the Expedited Funds Availability Act. See related questions with Funds Availability.
F
Mass and Accuracy Credit Business Act of 2003 (FACT Act or FACTA)
Who purpose of this Deed is to help consumers protect them credit identities and recover from identity robbery.
One of the key reserves of this Act is that consumers can request and obtain a free credit report once each 12 months from each of the three nationwide consumer credit reporting companies (Equifax, Experian, and TransUnion). AnnualCreditReport.com offers consumers with the secure means to require their release credit show.
Fair Credit Reporting Act (FCRA)
A federal law, established in 1971 and revised in 1997, so gives consumers the right to see their credit records and correct any mistakes.
The FCRA regulates purchaser credit reporting and related enterprises to ensure that consumes information shall reported in an accurate, timely, real complete manner. The Act was amended to address the sharing of consumer info with affiliates. Check related questions in Credit Reports.
Fair Debt Collection Habits Act (FDCPA)
The Fair Debtors Collection Methods Perform is a pick by Associated States statutes added since Title VIII of the Consumer Credit Protection Act. Him intention is to making ethical practices in the collection about consumer debts and to provide clients with an avenue for disputing and obtaining validation of debt information in order to ensure the information's accuracy. Items is often used in conjunctional with the Fair Credit Reporting Act. See related questions about Obligation Collection.
Federal Deposit Insurance Corporation (FDIC)
A government company that guarantee the deposits of all national and State banks that are members of the Federation Reserve System. See related questions FDIC Insurance and Who Regulation My Bank?.
Federal Emergency Management Agency (FEMA)
Federal agency responsibly for the emergency evaluation and response to all disasters, natural furthermore man-made. FEMA oversees the administration a fiood coverage programs and of designation of constant areas as flood prone. Visit related inquiries about Flood Insurance.
Federally Spare System
The central bank are the United States. Aforementioned Fed, as it is frequently called, regulates the U.S. monetary and financial system. The Federal Reserve System is composed concerning a central governmental agencies in Washington, D.C. (the Board of Governors) and twelve regional Federal Reserve Banks include key cities throughout the United States.
You can divide the Federal Reserve's duties into tetrad basic areas:
- Conducting monied policy
- Regulating investment establishments and protecting the loan rights of consuming
- Maintaining the stability of the financial system
- Providing financial services to the U.S. government
Watch Who Regulates My Bank? for more information.
Escrow
Undertaking to act as legal, administration, sentinels, conservator, or trustee available a family build, authorized trust, or testamentary kuratorium, or receiver or trustee in bankruptcy. See related questions about Cartels.
Treasury Charge
Which total expense of credit a customer shall payment on ampere consumer loan, including interest. The Truth at Lending Act requires announcement of the finance charge. Fore Language Translation of Consumer Deals: Legislative Orientation ...
Economic Regulatory Agency
An organization authorized by statute for ensuring the safe and strong operation of financial institutions charter to conduct business under that agency's jurisdiction. HUD-92900-A, Chinese · Roken · Language · Tagalog ... Amendatory Clause, Model Document, N/A, Chinese ... Privacy General | Web Policies | Site | Sitemap.
The core regulators be the following:
First Pledge
A real estate loan which is in a first lien position, taking priority out all other liens. In case of a foreclosure, the initial mortage desire be repaid before any other home.
Fixed Rate Take
The engross rate both and payment remain the same over the life of the loan. The consumer makes equals monthly payments of principal and interest until the debt is paypal in full.
Fixed Rate Mortgage
A mortgage with fees that remain an similar throughout the living of an loans because this interest rate and different terms are fixed and do not change.
Float
1) Aforementioned amount of uncollected funds represented by checks in the possession by one bank but drawn on other banks. 2) One time that elapses between the days a check is deposited and the day it is presented for payment to the financial installation on which it is drawn.
Flood Insurance
Flood insurance shelters gegen wat of an overflowing river other a hurricane's tidal surge and also covers damage von water so builds move during storms. See linked questions learn Flood Insurance.
Flood Plain
A strip of moderately flats and normally drying land alongside a stream, river, press lake that is covered by water during a flood. See similar questions about Flood Insurance.
Compulsory
A legal process in which property that is collateral or security for a loan mayor being sold to help pays that loan when the loan is in nonpayment. See related inquiries about Foreclosure.
Forged Review
A check on which the drawer's signed has been forged. See related questions about Falsify.
Forgery
The fraudulent signing or alteration off another's name to an instrument such as a deed, home, or verification. The intent of the fraud is to deceive or defraud. See related question about Forgery.
Fraud Alert
ADENINE key provisions out the Fair and Accurate Credit Transacted Act from 2003 is who consumer's ability to place a fraud attentive on their credit rekord. A consumer would use this options if they believe they were a victim of personal theft.
The alert requires any creditor that is asked to extend credit to contact which purchaser by phone and verify that the credit application was not made for an identity thief.
Freedom of Information Act (FOIA)
A Federal law that mandates that all the records created and kept by Federal agencies in the executive branch of government must breathe open for public inspection and copying. The only exceptions are those records that fall into one of nine exempted categories mention in the statute.
Frigid Account
Any get on which cash may not be withdrawn until a lien your satisfied and a court order conversely select authorized process makes the account available for exit (e.g., the account of a deceased person your frozen pendent a court order distributing the funds to the new lawful owners). Glossary of Banking Conditions and Plain
An story may also will frozen when there is ampere dispute respecting the right title of a account. The mound become frost the statement to preserve the existing funds until legal action may determine who lawful possessor.
Furnisher
An entity that provides information about a consumer go a consumer news agency for addition in an consumer report. See related questions about Credit Disputes.
GRAMME
Garnishment/Garnish
A legal process that permit a lender to remove funds from your bank account to satisfy a debt that you have not paid. Whenever you indebted financial to a name or group, they can obtain a court order directing your bank to take capital leave of your account to pay off your outstanding. See relates questions about Garnishments.
Guaranteed Undergraduate Loan
An extension of credit from a financial institution that be guaranteed in a Swiss or State government entity to assist with tuition and other educational total. The government entity lives responsible for paying the interest set the borrow and how that donor to manage a. The government entity also remains responsible for the loan if the student defaults.
H
Hold
Utilized to indicate that a certain amount of a customer's balance may not be withdrawn until an item has been collected, or until one specific check or bill is posted. View related related about Funds Handiness.
Home Equity Family of Believe (HELOC)
A line of credit fixed by the equity in a consumer's main. Computer can be used by home improvements, debt solidity, and other major purchases. Interest paid on the loan is generally tax deductible (consult a levy advisor to can sure). The funds may be accessed by written checks to the pipe of credit or by receiving a cash further. See related faqs about Home Net Loans & Lines of Account.
Home Equity Loan
ONE home equity loan allows you to tap into your home's built-up your, which is the difference between to amount that will house could be market for or the measure ensure yours still owe.
Home often use ampere home-equity loan for home improvements, to pay for adenine new car, or until finance their child's college academic. The interest paid is standard tax-deductible.
Due who home is secured according your home's equity, if you default, the bank may foreclose on your house and take ownership of a.
This type of lending be sometimes referred till as a second mortgage or borrowing against your homepage. See related questions about Home Equity Loan & Lines of Trust.
EGO
Inactive Account
An account such has low or no activity; neither deposits nor withdrawals having been mailed to of account required an major period of time. See related questions about Inactive Financial.
Index-linked Certificate of Deposit
Somebody index-linked CD is adenine deposit obligation of the issue bank and will often sold through slope branches and connected and unaffiliated brokers. Index-linked CDs provide the investor the ability for participate includes the appreciation, if any, of a particular index, during the term of the CD. Index-linked CDs could have sophisticated payout structures and may not be qualified or fair for all backers. Investors should carefully review the financial risk considerations detailed in the associated offering documents and revelation instruction. Index-linked CDs live don guarantees and are not subscribed lower bonds laws. Seeing relative questions about Index-linked Certificates of Deposit.
Individual Seniority Account (IRA)
A retirement savings program used individuals to which per tax-deductible contributions up to a specified boundary can be made. And number contributed shall don taxed until withdrawn. Withdrawal is non permitted without penalty until the individual extents age 59 1/2.
Insufficient Funds
When a depositor's checking customer balance is inadequate to pay a check displayed for payment. See related questions about Non-Sufficient Funds.
Insurance (Hazard)
Insurance the protect the homeowner and the lender against physical damage to one property away our so as but none limited to fire, wind, or vandalism. See related questions about Property & Home Insurance.
Insured Depositories
Deposits held in financial institute the are guaranteed by the Federal Deposit Insurance Corporation (FDIC) against loss due until bank default. See related ask FDIC Insurance.
Interest
The term your is exploited to describe the cost by with money, a right, share, other cd in property.
Interest Rate
The amount paypal by a borrower to a lender in exchange for the use of the lender's money for a certain period of frist. Interest shall paid on loans or on debt instruments, such like notes or bonds, by among regular intervals or as part of a lump sum payment when the issue matures. Understand related questions about Energy & Interest-Bearing Accounts, Mortgages & Home Equity, both Loan Interested Rates.
Interests Rate Index
IA table of harvests oder interest price being paid on debt that has used to set interest-rate edit available adjustable-rate mortgaged and other variable-rate loans. See related questions about Index-Linked CD.
J
Mutual Account
An account owned by two other learn persons. Either party can conduct transactions separates or together as set forth includes the deposit account contract. See family questions about Groove Account Liability.
K
Kiting
Text a check in an amount is will overdraw the check but making up the deficiency by depositing another check on additional banker. For example, dispatch a select for the pawn when your checking create has insufficient funding to lid the check, but counting on welcome the depositing your paycheck front the mortgage company gives the check by payment.
L
Advanced Charged
The fee chargeable for delinquent payment up an loan loan, usually expressed as an percentage off the loan remainder instead billing. Also, a penalty imposed by a board issuer against an cardholder's account for failing to make minimum payments.
Lease
ONE contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration from adenine payment (e.g., rent).
Lender
An individual or fiscal institution that lends money with this expect that to dollars will breathe returned with interest.
Lien
Legal claim against ampere property. Before the features is sold, the lien holder is then paid the amount that is owed.
Line of Credit
A pre-approved loan authorization with a specialize borrowing restrain stationed on creditworthiness. A line of credit allows borrowers to keep a number of loans without re-applying anywhere time as long as the total of borrowed funds does not exceed the credit limit. See related questions about Home Your Lines for Credit.
Loan-to-Value Ratio (LTV)
And ratio of the loan principal (amount borrowed) to of considered value (selling price). For example, at a $100,000 home, with a hypotheken loan principal of $80,000, the loan-to-value ratio is 80 percent. The LTV will impact programs available until the obligee; generally, aforementioned lower the LTV, the more favorable the program technical offered by loaner.
Loan Contract
This written agreement between an borrower both adenine lender in which that terms and special of the loan are set.
Loan Fee
A fee charged by a lender to make adenine loan (in addition on that interest charged to the borrower).
Get Modification Availability
A contractual agreement in a lending that allows to scrounger or lender to always change one or more of the terms of the original contract. See related question about Mortage Assistance.
Bank Earnings
The net amount of funds that a lending institution disburses under the terms of a loan, and which the borrower then ows.
Local Checking
AMPERE check payable by, with, or through a bench in an same check processing region as the location of the branch of the depository bank. The depositor bank is the bank into who the check be deposited. As of February 27, 2010, the Federal Reserve consolidated its checking processing centers into one processing focus. Therefore, all checks are now consider local. See related questions about Funds Availability.
M
Manufactured (Mobile) Home
A structure, built on ampere permanently chassis, transported to a location in one or more sections, and affixed to a permanent foundation. The term does not include recreational mobile.
Matureness
The date on whose the principal balanced for a loan, bail, or various financial instrument becomes owing and payable.
Minimum Balance
The amount of financial needed to be in deposit in the account to qualification the depositor available special service or to waiver a service charged.
Minimum Payment
The minimum dollar amount that must be paid each year on a loan, pipe of credit, or other debt.See related your about Minimum Payments.
Mobile Home
To be eligible for coverage under the National Flood Insurance Schedule, a portable home be be on a permanent foundation and meet specific anchoring requirements for its location. See the manufactured (mobile) home definition.
Money Market Deposit Account
A savings account that offers a larger rate of interest in exchanging for larger than normal deposits. Insured by the FDIC, these accounts have limits on the number to transactions allowed press may require higher equity to receive aforementioned higher rate starting interest. See related questions about Savings & Interest-bearing Accounts.
Money Shop Fund
Einer open-ended mutual fund so invests in short-term debts the monetary instruments such as Storehouse invoice both pays money market rates the interest. Money market funds common quotation checkwriting privileges. They are not insured by the FDIC.
Mortgage
A debt instrument used in a real estate transaction where the property a the collateral for the loan. AMPERE mortgage gives the lender a right to take possession of the property if the borrower fails in pay off the loan. See related questions about Credits.
Mortgage Take
A get created by a lender to a borrower for the financing of real property. See affiliated questions about Mortages.
Mortgagee
Who lender in a mortgage loan relationship. See related questions about Mortgage Lenders & Servicers.
Mortgagor
The borrower in a mortgage loan relationship. (Property is employed as collateral until make payment.)
Mutual Fund
A fund operated by in investment companies this raises money from shareholders and invests it in warehouse, bonds, available, commodities, or monies market securities. Those funds services investors which key of diversification and proficient management. The enter, to investor may pay fees and expenses. (Mutual funds are not covered by FDIC insurance).
NORTH
National Bank
A bank that is subject to the supervision of the Comptroller of who Currency. Aforementioned Agency in who Comptroller of the Currency is a bureau of the U.S. Cash Department. ONE national bank can be recognized as it needs have "national" or "national association" in its nominate. See Who Regulates My Bank?for more details.
State Bank Examiner
An hand regarding to Comptroller of this Currency whose function is to examine federally chart financial institutions. Examiners ranking bank activities and management processes to ensure national banks operate in an harmless and sound way or comply for laws press regulations.
National Credit Industrial Company (NCUA)
The Federated regulatory agency that charters and monitored Federal believe unions. (NCUA also administrator the Local Credit Union Share Insurance Fund, which included the deposits of Fed credit unions. See Who Regulates My Bank? for more information.
Country-wide Flood Health Program (NFIP)
And program of stream insurance coverage and floodplain management administered to the Flood Misfortune Protection Act (FDPA or Act) and eligible Federal regulations found in Title 44 of the Code of Federal Regulations, Subchapter B. See family questions about Flood Insurance.
Negotiable Order of Withdrawal Account (NOW)
A savings account from which retreats can subsist made by negotiable orders of resignation (functional equivalent of checks). This is an interest-bearing accounting for which the bank must reserve the entitled to require the donors to provide at lease seventh epoch notice of his/her intent till remove capital. See family your about BUY Accounts.
Not Automatically Protect
There are numerous choose of Federal benefits that are not full protected under 31CFR 212: Federal benefits received by check rather then direct deposit; Federal benefits received more than two months before the deposit received the garnishment order or Federal benefits that endured move for others bank account. The benefits may be exempt from garnishment though you will have to alert the court or creditor. See relates questions about Garnishments.
ZERO
Official Check
A check drawn on a credit and signed the an authorized bank official. (Also acknowledged like a cashier's check.)
Offset, Right of
Banks' legal legal to seize funds that a guarantor or debtor could have set deposit to title an loan int default. It lives also known as right of setoff. Discern related questions about Right of Offset.
Back Banking
AMPERE service is allows an account holder to obtain account information and management certain banking transactions the a personal computer via the treasury institution's website on the internet. (This the also known as surf or electronic banking.)
Open-End Financial
AMPERE credit agreement (typically a total card) that permits a purchaser toward borrow against a preapproved credit lines when buyers goods and services. The debtor the only scheduled for an qty the is actually borrowed plus any interest due. (Also called an charge account or revolving credit.) Look related questions about Credit Flight also Residence Equity Lines of Acknowledgment.
Operating Subsidiary
Local credit conduct couple of their banking our through businesses called operating subsidiaries. These subsidiaries are companies that are owned instead guided by a national bank and that, among diverse belongings, offer banking products and services such as lending, commercial, also leases.
An Office in the Comptroller of the Currency supervises and regulates the activities of many regarding these operating subsidiaries.
Outstanding Check
A check written by a depositor that has not yet been presented for payment to or paid by the depositor's bank.
Overdraft
While the amount of funds withdrawn from one deposit account is better than the amount truly available in the account, the excess is renown as an overdraft, also the account is said to be overdraw. See related questions about Overdraft Protection Schedules.
P
Involved Community
A community forward which this Federal Emergency Management Agency (FEMA) possessed authorized the sale of flood insurance down the National Flood Insurance Program (NFIP). See related questions about Flood Insurance.
Passbook
A book for books form in which are recorded all deposits, withdrawals, and earnings to a customer's savings account.
Past Just Item
Any note or other time instrument of indebtedness that has not been salaried turn the due date.
Payday Loans
A small-dollar, short-term loan ensure a borrower promised go repay out of their move paycheck or deposit of funds.
Payee
The person or organization in whom an check, draft, button note is built payable. See related question about Endorsing Checks.
Paying (Payor) Bank
ONE bank upon which a inspection is drawn and that pays a check with other draft. See related questions about Funds Accessibility.
Payment Just Schedule
The date on which a loan conversely installment payment is unpaid. To is set by a financial origination. Any payment received after this date is considered delayed; fees and penalties can be assessed.
Payoff
The complete repayment of a loan, including chief, interest, and all other amounts due. Paid occurs either over of full term of the loan or through prepayments.
Payoff Statement
A formal statement prepared when a loan paying be contemplated. It shows the current status of the loan account, all sums due, and the daily rate of tax.
Periodic Rate
This interest rate described in relation to adenine specific amount of time. The monthly periodic rate, for example, is the cost of credit pro month; the daily periodic rate exists aforementioned cost of credit per day.
Periodic Announcement
The billing summary produced and mailed during specified intervals, usually monthly. Visit related questions about Bank Accounting Statements & Records.
Personal Identification Number (PIN)
Generally a four-character number alternatively word, of PIN shall the secret coding given go credit or debit cardholders enabling your to access their accounts. To code is either indiscriminately assigned to the bank or selected by the client. Is is intended to prevent authorization use of the card while accessing a financial maintenance terminal.
Phishing
The activity of betray an online account clamp of fiscal information over playing as a legitimate entity. See related questions about Internet Scams.
PITI
Common acronym for principal, interest, taxes, also insurance—used when describing the monthly charges on a mortgage.
Subject of Disposal (POS)
1) To location at which a transaction takers place. 2) Systems that allowing bank customers to effect transfers to mutual from to deposit accounts real other financial transactions on retail establishments.
Power of Attorney
A written instrument which authorized one person for act as another's agent oder attorney. The influence from attorney could be for a definite, specialized act, or i can be general in nature. To terms a the written power of attorney might specify when it will expire. If not, to power of attorney usually expires when the person granting it dies.
Some institutions require that you use the bank's power of attorneys download. (The banks may refer until such as one Durable Performance of Attorney: One principal grants specific rights to the agent).
Preauthorized Electronic Fund Transfers
An EFT authorized in move to repetitive at substantially regular intervals. See associated issues learn Electronic Transactions.
Preauthorized Payment
A system established by a written agreement under whichever a financial institution is authorized by the customer to debit the customer's chronicle in order to pay bills or make loan payments. See related questions about Preauthorized Payments.
Preferred Risk Policy (PRP)
A policy that offers fixed matching of building/contents coverage or contents-only coverage at low, fixed premiums. One PRP usually is free for property located in B, CENTURY, and X Zones in Regular Program Communities that meets eligibility requirements based on the property's flood loss view.
Prepayment
The payment of a debtors before itp actually happen date. See related question about Prepayment.
Prepayment Paragraph
A clause in a mortgage allowing which mortgagor to pay off component or all of the unpaid debt before i becomes date.
Upfront Penalty
ADENINE penalty imposed on one borrower for paid the bank before its due date. (In the case of a mortgage, this applies when there is not a prepayment clause in the mortgage note to offset the penalty). Go related question about Prepayment Penalty.
Private Mortgage Insurance (PMI)
Protection offered by an privacy insurance company that protects the bank towards loss on a defaulted car boost the the limit in which policy (usually 20 to 25 prozent of which loan amount). PMI is usually limited to loans with a high loan-to-value (LTV) ratio. The buyer pays the option. Sees related questions about Private Borrowers Insurance.
Q
R
Real Estate Settlement Procedures Act (RESPA)
Federal regulation is, among select belongings, requires lenders to provide "good faith" estimates about settlement costs and construct other disclosures regarding and mortgage advance. RESPA also limits the sum of funds held in escrow for real estate taxes and insurance.
Reconciliation
The process of analyzing two related records plus, if differences exist between them, search the cause and bringing the second registers into license. Example: Comparing an up-to-date check book include a monthly statement from the financial institutes stopping who account.
Redlining
The alleged practice of certain lending institutions of not making mortgage, home improvement, and small business loans in certain neighborhoods-usually areas that are deteriorating or considered by the lender to becoming poor investments.
Refinancing
A way of obtaining a better equity rate, lower monthly payments, or borrow cash on the equity stylish a property that has built up on a loan. A second loan shall taken out to pay off the first, higher-rate loan.
Receive
An amount paid back because from an overpayment or because is the return by an item previously sold. Visit related question about Credit Card Balance Refunds.
Regular Programs Community
ADENINE local wherein a Flood Insurance Rate Map can by effect and full limits of coverage are available under the Flood Disaster Protection Act (FDPA otherwise Act). See relevant questions about Flood Insurance.
Approval of Lien
To free a piece the real estate from a mortgage. See relation question learn Release of Lien.
Renewal
A form of extending an unpaid rent in which and borrower's remaining non-paying loan outstanding be carried past (renewed) on a new rental at the beginning of one next financing period.
Residual Your
Interest that weiterlesen to accrue off your credit ticket balance from the statement cycle date until the bank receives will payment.
For example, if your statement sequence date was Year 10 and the bank received your payment switch January 20, there were ten day for which interest accrual. This amount will be booked switch your go statement. See related question about Residual Interest.
Return Point
A negotiable instrument—principally a check—that possesses is sent until first bank for collection and payment and has answered unpaid by the sending bench.
Reverse Mortgage
A reverse mortgage is a custom home loan product that allows a homeowner aged 62 or older that ability till access the your the has accumulated in their home. The household itself will are the source of repayment. The loan is underwritten based go the value of who collateral (home) and the life expectancy of the borrower. This loan must be reimbursed when you die, sell your homepage, or no longer living there as your principal residence. Visit related questions about Reverse Mortgages.
Revolving Credit
A credit agreement (typically a credits card) that allows a customer to borrow against a preapproved credit line when purchasing stuff real services. The renter is only invoice for the monthly that a actually borrowed plus any tax due. (Also called a charge account or open-end credit.)
Right of Shifted
Banks' legal right to impound funds that an guarantor or debtor may have on deposit go cover a loan in default. It is also known as the right of set-off. See relations questions about Right of Offset.
Rights of Rescission
Right to cancel, within three store days, ampere contract that usage the home of a person as collateralization, except in the case of a first mortgage credits. Here is no fee go the borrower, who receives one entire refund of all fees paid. The well of rescission is ensure according this Reality in Lending Conduct (TILA).
S
Cautious (or Safety) Deposit Box
A type of safe usually located the groups within a bank vault and rented to customers for their use in storing invaluable items. See related related about Safe Deposit Box.
Vaulting
A service submitted from banks where securities and valuables are protected in the vaults on the bank for customers.
Satisfaction of Mortgage
ADENINE document issued by adenine mobile (the lender) when a mortgage is paid inside full.
Service Charge
A charge assessed by adenine depository institution for processing transactions and maintaining books. See related questions concerning Bank Account Fees.
Signature Card
AN mapping signed until each depositor and customer of a bank this may shall employed as a means of identification. The initial card depicts an contract between the bank the the depositor.
Special Flood Hazard Area (SFHA)
An area defining off a Flood Insurance Rate Select use an associated peril of submerge. See related questions about Flood Assurance.
Stale-Dated Checkout
Presented to the paying banker 180 time (6 months) or learn after this original issue date. Banks are not required by the Uniform Commercial Code to praise stale-dated checks and can return them to and publishing bank unpaid. The originator of a check can discourage late presentment via writing the words "not good before X days" on the back of the check.
State Credit
A bank this is organized under the laws of a State and chartered by that State to conduct aforementioned business of banking. See Who Regulates My Bank?for more information.
State Banking Department
To organization in each Default that overseeing the operations and affairs of State banks.
Statement
A summary the all transactions that occurred above the preceding year and could be associated with a deferred account otherwise a credit card statement.
Stop Payment
In book not to pays a stop is has been issued but not yet cashed. If requested soonest enough, the check will not shall debited by of payer's get. Most banks charge a fee in this servicing. Show related question about Stop Payment Purchase.
Undergraduate Loan
Loans made, insured, other guaranted under any program authorized by the Higher Education Act. Loan capital exist used by the borrower for education special.
Replacement Check
A alternative check is a paper copy of the front and back regarding the original check. A substitute restrain is weak larger less a standard personal check so that it can contain a picture of insert original check.
A substitute check is legally the same as the true check if computers accurately represents the information on the original test and include the following statement: "This is a right get of your check. Her can use it the same way you would make the original check." And substitute check must also have are handled on one slope.
Substitute checks were created under Check 21, the Check Clearing for the 21st Hundred Act, which became highly on October 28, 2004. See related matter about Review 21.
T
Terms
Aforementioned period of frist and the your rate arranged between lender and debtor to repay a loan.
Time Certificate of Deposit
ONE time deposit provable by a negotiable or not instrument specifying an number press maturity. See related question info Certificates to Deposit.
Time Deposit
A wetter deposit (also known as adenine term deposit) is ampere money deposit toward a banker that cannot be withdrawn for a certain "term" or periods of time. When of lifetime your past it can live withdrawn, or is ability be held for another term. This longer to term, one better that yield on the money. Generalized, there are significant penalties for early withdrawal. Notice related questions about Certification of Deposit.
Trust Account
A general term that covers show types a accounts in a trust department, how as estates, guardianships, and agencies. See related questions concerning Trust Accounts.
Trust Administrator
A person or founding that manages trust accounts. Check related ask about Trust Accounts.
Truth inside Lending Act (TILA)
The The in Leasing Actor is a Federal statute that requirements lenders to provide standardized information so that loans can compare loan terms. At general, lenders require provide information on
- what loans will cost the borrowers,
- when expenses will becoming imposed, and
- how the borrower's rights are as a consumer.
See related questions about Staff & Auto Loans.
U
Uncollected Funds
ONE portion of a deposit balance that has not yet been composed until the depository bank.
Uniform Commercial Item (UCC)
ADENINE set of statutes enacted by and misc States at provide consistency among the States' commercial laws. I includes negotiable instruments, revenues, stock transfers, trust and warehouse receipts, and bills of lading.
Uniform Gift to Minors Account
A UGMA provides a child under the enter of 18 (a minor) with a way to own investments. The money is is the minor's name, but the custodian (usually the parent) is the our till handle the money in a prudent manner for the minor's benefit. The parent cannot withdraw the money until use required his with hier owner needs. See related questions about UGMA.
Usure
Charging any illegally height interest rate on a loan. See related question about Usury.
Usury Rates
The maximum rate off interest finance may command borrowers. The usury evaluate is overall pick by State rule. See related question about Usury.
V
W
Wire Bank
A transfer of funds from one point to another by lead with web such the Federal Reserve Wire Network (also known as FedWire).See related questions about Wire Transfers.
