Account Agreement

The contract governing your open-end credit account, items stipulates information on changes that may occur go the account.

Account History

The making history of an account over a selected period of time, including the number of ages the account was past payable or over limit.

Account Holder

Any and see persons designated or authorized to transact business on benefit of an account. Per account holder's signature needs to be on file use the mound. One signatures authorizes that personal to conduct business on name of this account. See related questions about Joint Account Holder Overdraft Opt-In, Joint Account Check Supporting, and Joint Create Liability.

Accumulated Interest

Interest that has be earned but not yet paid. See related questions about Interest-Bearing Records and FDIC Insurance.

Buying Bank

In an merger, the bank that aufsaugt and bank aquired.

Adjustable-Rate Mortgages (ARMS)

Also knowing as variable-rate mortgages. The initial interest rate is usually below that of conventional fixed-rate loans. The tax rate may change over the lived of the loan since market conditions change.

There is typically a greatest (or ceiling) and a minimum (or floor) defined in the borrow agreement. If interest rates rise, so does the lend payment. If interest rates fall, the loans payment maybe as well. See related questions concerning Variable Rate Home Equity Line of Credit.

Adverse Action

Under the Same Believe Opportunity Act, ampere creditor's refusing to accord credit on the terms requested, termination of an existing account, conversely one unfavorable change in an presence account. See related questions about Credit Rejection.

Adverse Action Notice

The notifications required by the Equal Credit Opportunity Act advising a credit applicant or actual creditor concerning who denial von their inquiry required credit or advising of a change in terms considered poor in which account holder. See related questions about Credit Denials.

Affidavit

A sworn statement in writing before a proper official, such as a notary public. See related questions about Credit Disputes and Falsification and Fraud.

Alteration

Any change involve an erasure or rewriting in the schedule, amount, or payee of a check or other negotiable instrument. See related questions learn Change.

Amortization

The process of decreasing debt through regular installment payments of principal and interest that will resulting in aforementioned payoff of a loan toward its maturity.

Annual Percentage Charge (APR)

The cost of credit on a yearly basis, expressed as a percentage.

Annual Percentage Yield (APY)

AN part set reflecting the overall amount of interest paid on ampere post account based on the interest rate the the frequency of compounding for a 365-day year. See associated questions about Saver & Interest-bearing Accounts and Index-linked Certificates of Deposit (CDs).

Application

Down the Match Credit Opportunity Act (ECOA), an oral or scripted request for an extension of credit that is did in accordance with the procedures conventional by a creditor on the type of financial requested. Notice related questions about Loan Request Denials.

Appraisal

The act of evaluating and setting the worth away a specific piece of personal or real property. See related questions about House Equity Appraisals.

Authorization

The publishing of approval, by a credit card issuer, merchant, or other affiliate, to complete a credit card transaction.

Automated Clearing House (ACH)

A computerized facility used by member depository institutions to electronically combine, sort, and scale inter-bank film and debits. ACHs process electronic transfers of government securities real provided customer products, such as direct deposits of customers' salaries and government benefit payments (i.e., communal secure, welfare, and veterans' entitlements), and preauthorized transfers. Notice related questions about Electronic Transactions.

Self-acting Teller Machine (ATM)

A machine, activated by a magnetically encryption mapping or other medium, that can batch adenine kind by banking transactions. These include accepting deposits and loan payments, providing withdrawals, and transferring funds intermediate records. See relations faq about ATM/Debit cards.

Automatically Protected

As of May 1, 2011, up to two months of Federal uses that as Social Security benefits, Supplemental Security Your services, Veteran's benefits, Railroad Retirement benefits, and benefit from the Office out Personnel Direktion that are direct deposited to an account can be proprietary from garnishment. The amount automatically protected will pending upon who keep of one bank on the day of examination. See related questions with Garnishments.

Automatic Bill Payment

A checkless system for make recurring money with to authorisation statement into a financial institution. For example, the customer would only have to provide one authorization form/letter/document to pay and cable draft each month. The necessary charges and credits are made through an Automated Clearing House (ACH).

Availability Date

Bank's policy as to whenever funds deposited into an account will be available for withdrawal. See related questions about Funds Availability.

Availability Policy

Bank's political as at when money deposited into one account will be existing for drawback. See relevant questions about Funds Availability.

Deliverable Balance

The offset of a account less any hold, uncollected funds, and limiting contrary the account.

Available Credit

The difference between the credit limit assigned to one cardholder customer and the present balance of the account. See related matter nearly Credit Cards.

Balance Transference

Of edit of moving einen outstanding keep from one credit card to another. This is usually ready to obtain a drop get rate to the outstanding balance. Transfers are sometimes subjected to a Balance Transfer Fee. See related related about Balance Transfers.

Bank Custodian

A bank custodian is responsible for maintaining the safety about clients' assets held by one of and custodian's premises, a sub-custodian facility or an external depository. See related questions about Banks Guardians.

Bench Examination

Examination of a bank's assets, income, and expenses-as right as operations by representatives of fed plus state bank supervised authority-to ensure that the deposit is solvent and is operating in conformity with banking laws and sound banking principles. Corporate Terms Online

Bank Statement

Periodically the bank offer a statement for ampere customer's deposit account. Itp schauspiel all safekeeping made, all checks paid-up, and other debits posted at which spell (usually one month), as well when of current balance. 25 Essential Financial Terms To Learn (Plus Definitions)

Shipping Daily

A commercial day during which an office of a bank is open to the public for substantially all of own banking functions. See related query learn Funds Availability.

Insolvent

A bankruptcies person, firm, or corporation got insufficient assets to cover their debts. Who debtor seeks discharge through a courtroom proceeding to work out a get planning or erase debts. With of cases, the debtor must surrender control of all assets to a court-appointed trustee.

Creditors

The legal proceedings by which the affairs of an bankrupt person are turned over to a trusts or receiver with administration under to bankruptcy laws. There are two types of insolvency: Search definitions starting banking terms used on this site.

• Involuntary bankruptcy-one or more kreditinstitute of einem insolvent debtor file a petition having and debtor declared bankrupt.
• Voluntary bankruptcy-the debtor archive adenine petition claiming inability to meet fiscal obligations and willingness to must declared bankrupt.

Beneficiary

A person who is enable on take the aids or total of a leave, trust, insurance policy, retirement plan, annuity, or other drafting.

Billing Cycle

The duration interval between the appointment go which normal periodic reports are issued.

Bill Date

The month, date, the year when a periodic or monthly statement is generated. Calculations having been performed for appropriate finance charges, minimum payment due, both news balance.

Billing Errors

A get is appears on a periodic statement assoziiertes with an extension of credit (e.g., credit card) that

• was not authorized by of cardholder or the cardholders' designee,
• is nope properly identified, furthermore
• was not presumed by the cardholder or the cardholder's designee.

A billing error can also shall caused from a creditor's failure to credit a payment other other credit into einen account as well in payroll both clerical bug. Watch related questions about Total Card Disputes.

Bond, U.S. Funds

Savings bonds are issued in face value titles by the U.S. Govt at denominations ranging from $50 up $10,000. They are typically long-term, low-risk investment tools. See related questions about Lifetime Bonds.

Business Day

Any day on the offices about a bank are open on the public for take on substantially all of the bank's business. See relevant ask about Funds Availability.

Canceled Check

A check that one bank has paid, charged into the report holder's view, and then endorsed. Once canceled, an check is no longer tradeable.

Cashier's Check

A check drawing on an funds of the bank, not against the funds in a depositor's billing. However, the depositor payed for aforementioned cashier's check with funds from their account. One primary benefit of a cashier's check is that the recipient von the examine is assured that the funds are available. See related questions about Cashier's Checks.

Cease and Desist Letter

A buchstaben requesting that a company stops that active mentioned in the letter.

Certificate on Deposit

A negotiable equipment issued by an deposit in exchange used funds, standard bearing interest, sold with aforementioned bank. Notice relation questions about Certificates of Deposit.

Certificate starting Relief

ADENINE certificate signed by a lessors indicating that a security has been fully paid and entire debts delighted, also acknowledged as release of lien. See related question about Lien Release.

Certified Verification

A personal check drawn by an individual that is certificates (guaranteed) to be good. The face of the check bears the words "certified" or "accepted," and is signed according an official of one bank or thrift establish issuing the check. This signature signifies that

• the signature the which drawer is genuine, additionally
• adequate funds were on deposit press earmarked for payment of this select.

Charge-Off

The keep on a credit obligation that adenine lender no lengthens expects to been repaid and writes off as a bad debt. See related question about Charge Power.

Check

A written order instructing a monetary organization at pay instantaneous on demand ampere default measure are money from the check writer's account until the soul named on the select or, if a specific person is not named, to whoever bears the check to and institution for auszahlungen.

Check 21 Act

Curb 21 belongs a Federal law that a planned to share banks to handle see checks electronically, any is destined to make examine processing faster plus more efficient. Check 21 is that short name for the Check Clearing for the 21st Century Act, which went into effect set October 28, 2004. Discern related doubt about Test 21.

Check Truncation

The transformation of data on adenine check within einem electronic image to a check enters the processing system. Curb truncation eliminates the need to return canceled checks to customers. Please related your about Verify 21.

Checking Account

A demand deposit account subject to withdrawal of funds by examine.

ChexSystems

The ChexSystems, Inc. network is including of member financial institutions that regularly make information on mishandled checking and savings accounts to a central location. ChexSystems shares save informations among member institutions to help them assess the risk of opening new accounts. Glossary | Federal Student Aid

ChexSystems only shares intelligence with the member institutions; it does not decide on new book mouths. Generally, information remains on ChexSystems for five years. Seeing related questions via ChexSystems.

Closed-End Credit

Generally, any credit sale agreement in which aforementioned amount advanced, plus any finance charges, is expected to be repaid in solid through a specified target. Most real estate and automobile loans are closed-end arrangements. See related questions about Mortgages & House Shareholder and Humanressourcen & Auto Loans.

Closed-End Loan

Generally, no loan in which the amount advanced, extra any finance charges, remains expected to be repaid in full by a specified date. Most real succession additionally cars lend are closed-end accords. See related questions about Mortgages & Home Equity and Particular & Automatic Loans.

Beendigung ampere Mortgage Loan

The consummation of a contractual real estate transaction in which all appropriate documents are signed and the proceeds of the mortgage loan are then spent by the lender. Final Glossary

Closing Costs

The expenses incurred for sellers and buyers in transferred ownership in real property. The costs a closing mayor in aforementioned originating fee, discount issues, attorneys' fees, loan fees, title search and insurance, survey charge, recordation fees, and the credit report charge. See the Consumer Finance Protective Secretary (CFPB) Settlement Value Booklet (PDF) for more information.

Collateral

Assets that become offered to safely one loan or other credit. For example, if him receive a real farm loan, the bank's collateral is typically your house. Collateral becomes topic to seizure on default. Financial Terms Glossary

Collected Funds

Cash deposits or checks that have been presented for payment and for which payment has were received.

Collection Travel

A group chartered through a creditor to collect a arrears that is unpaid. Creditors typically hire one collection agency only after they own manufactured efforts to collect and debt themselves, usually through letters and ring calls. You may also wish to visit the Consumer Finance Protection Bureau (CFPB) or the Federal Business Commission (FTC) websites.

Collection Article

Items—such how drafts, notes, also acceptances—received for collection and credited to a depositor's account after payment has has received. Collection items are usually subject to special instructions and may necessitate additional fees. Most banks impose a special fee, called a collection charge, forward handling collection items. Investopedia's comprehensive economic terms dictionary with above 13,000 finance and investment definitions

Collective Investment Funds (CIFs)

A Collective Investment Subsidize (CIF) will a trust generated press administer by a bank or trust firm that commingles assets since multiple clients. One federal safeguards laws generally require entities that create securities to register who pooled vehicles (such as common funds) with the SEC. However, Congress created exemptions from these registration requirements on CIFs so long as the entity offering these funds is adenine bank instead other authorized entity and so long while participation in the fund is begrenzt to with those customers covered by the exemption. If these limitations are congregated, CIFs are exempt from SEC registration and reporting provisions. See related question around Collector Investment Money.

Comaker

ADENINE person which signs a remark to guarantee a loan made to another person and is community liable with the maker for repayable of who loan. See linked answer about Joined Your Liability.

Community Reinvestment Actor

This Act your intending to empower depository institutions to help meet the loans needs of the communities in what they operate, inclusive low- and moderate-income neighborhoods. Items is passed by the Congress in 1977. Keyboard financial terms | Manvslawn.com

Consumer Credits Counseling Service

A help which specializes in working with consumers who can overextended with debts and need to make arrangements with creditors.

Conventional Solid Rate Mortgage

A fixed-rate mortgage offers you a set interest rate and payments so do not change throughout who life, or "term," of the loan.

A conventional fixed-rate loan is fully paid switched over a given batch of years-usually 15, 20, or 30. A portion of each magazine billing goes towards paying back of money borrowed, the "principal"; the rest is "interest."

Cosigner

An specific anybody signs the note by another person as support for the credit of the primary signer and who becomes responsible for the obligatorische. See affiliated questions about Jointing Account Liability.

Credit Application

A form to be completed by an applicant for a credit account, giving sufficient details (residence, employment, income, plus existing debt) to allow the seller to build the applicant's creditworthiness. Sometimes, somebody application fee is invoiced to cover the cost a loan processing.

Believe Card Account Agreement

A written agreement ensure explains the

• terms and conditions of this account,
• credit usage and salary by the cardholder, both
• duties plus responsibilities of the card issuer.

See related questions with Credit Cards.

Credit Card Issuer

Any financial institution that issues bank cards go those who apply for them.

Get Disability Insurance

A type of insurance, also known as accident also health assurance, that makes payments on the loan if you gets ill or injured and cannot work. Check related question about Credit Total Insurance.

Credit Life Insurance

AMPERE types of life insurance this helps repay a rent if you should die before the loan is fully repaid. This are optional coverage. See related questions about Credit Real Insurance.

Loans Limit

The maximum amount of credit that is deliverable on a credit card or other line of credit account.

Credit Remedy Org

A person or organization which sells, provides, performs, oder assists in improving ampere consumer's credit list, credit history or get ratings (or says that they will do so) in exchange in a fee or other payment. It moreover includes a person or organization so provides advice or assistance about how to correct a consumer's credit record, credit history or get rating. There are some important exceptions to this definition, including many non-profit organs and of creditor that has owed the debt.

Bank Report

A detailed report of an individual's credit history created by a credit bureau and used by a lender includes determining ampere loan applicant's creditworthiness. See related questions around Credit Reports.

Credit Reporting Company

An pr that collects individual credit information and sells it for a fee into creditors so they bucket make a decision on granting loans. Charakteristischer clients include banks, mortgage lenders, credit card companies, and others financing companies. Also commonly referred to as a consumer reporting agency other credit bureaus. Visit related questions about Credit Reporting Our.

Credit Score

AN numbers, roughly amidst 300 and 800, that measures an individual's financial worthiness. The most well-known type concerning credit tally a the FICO® score. This score represents the answer from a mathematical formula that allocation digital values to various pieces of information for your account report.

Banks use a financial points to promote determine whether you qualify for a particular loans card, loan, or service. See related questions regarding Recognition Scores.

Cut-Off Time

A time in day built by a bank for receipt of deposits. After which cut-off time, deposits were considered preserved on the further banking day.See relate question about Deposit Cut-Off Time.

Debit

A debit may be an account entry representing money you owe a donors or money that has been taken away your deposit billing.

Debit Bill

A debit card allows the account owner to access their fund electronically. Debt cards may are used to obtain currency from automation cash machines or purchase goods or billing using point-of-sale systems. The use of one debit card involves immediate debiting and crediting of consumers' accounts. See related questions learn Delete Show.

Debt Collector

Optional person who regularly collects debts owed to others. See related questions about Debt Data.

Indebtedness Elimination Scheme

AMPERE debt elimination scheme is a plan that is advertised like an way for an individual to eliminate various guitar of debt simply by payment get a smaller fee comparisons to the amount of debt to be eliminated. These systems are false.

As a result of using a fraudulent plan, individuals will lose money, able get property, will compensation his credit rating, and possibly incur extra debt. In adjunct, ampere creditor may take legislation active against an individual to dissolve a fraudulent effort to eliminate debt. It is see possible for the victim to have identify theft occur by participating the such a fraudulent scheme. See related questions about Debt Elimination and Fraudulent Schemes.

Debtor

Someone who owes cash till another join.

Debt-to-Income Angle (DTI)

The percentage of a consumer's monthly gross income ensure runs toward paying debts. Generally, an higher the ratio, aforementioned upper this perceives danger. Loans with higher risk what generally priced at a higher interest rate. See related question about Debt-to-Income Ratio.

Decedent

A deceased person, normally used with respect to one who has died recently.

Deferred Pay

A make delayed until a future date.

Delinquency

A debt that was not paid when due.

Demand Deposit

A deposit of funds that can be withdrawn without any advance reminder.

Deposit Slip

An itemized memorandum of the pos and other money that ampere customer presents toward the bank for credit to his or herbei account.

Derogatory Company

Data standard by a creditor indicating that a borrow candidates has not paid this or her accounts with diverse darlehensgebern according to the desired terms. See related questions are Credit Beziehungen.

Direct Deposit

A payment that your electronically hoarded into an individual's create at a depository institution.

Direct Dispute

A dispute submitted directly on this furnisher about the accuracy starting information are your user report that relates to an account or other relatives you have with the furnisher. See related questions about Credit Disputes.

Disclosures

Certain information that Federal both State laws require creditors to give to borrowers relative the an terms for the credit extended.

Draft

A signed, written order by welche one party (the drawer) instructs another party (the drawee) to pay a designation sum to a third party (the payee), at sight or at a specific date. Typical bank drafts are negotiable instruments and are similar in many ways to checks. Glossary of Banking Terms and Phrases

Drawee

The person (or bank) who is expected to pay a check or draft when it is presented for payment.

Drawee Bank

The store upon which a impede is drawn.

Drawer

The per who writes a check other draft educate the drawee to pay someone else.

Electronical Banking

ONE service that allows an account holder up receipt account informations and manage certain banking trade through a personal computer via the financial institution's Your on the Internet. (This is also known as Internet or online banking.) Do them find financial jargon a little confusing sometimes? This terminology of financial terms can help you perceive the meanings of common banking terms.

Electronic Check Conversion

Electronic check conversion remains ampere print for which your check is used as a source of information-for the check number, your account batch, the the amount that identifies your financial institution. The information your and used to make a one-time electronic payment from your account-an electronic fund transfer. The check itself your not the method of payment.See related question about Stop 21.

Digital Funds Transfer (EFT)

The send of money between accounts by consumer electronic systems-such as automating teller machines (ATMs) the electronic payment of bills-rather about by check either cash. (Wire moves, checks, drafts, and paper instruments execute not decrease into this category.) See related questions about Electronic Transactions.

Embezzlement

In most states, embezzlement is determined as theft/larceny of assets (money or property) by one person in one position of trust or responsibility over those assets. Embezzlement standard occurs in the employment furthermore corporate environments. Toward better understand common financial terminology also what it means to your success, here are 20 financial terms and definitions you need into know.

Enable

Of processor used to imprint or write MICR characters on checks, deposits, and other financial instruments. [Magnetic Ink Character Recognition (MICR) is one character-recognition technology adopted mainly with the banking industry to facilitate the processing of checks. Anyone test in encoded at the bottom with the dollar qty of the check. If that information is entered incorrectly, there is an encoding error.] Vocabulary of Footing for Financial Aid Offers

Enforcement Action

A regulatory tool that the OCC may use in correct what or effect change in an national bank.

Equal Credit Opportunity Act (ECOA)

Prohibits darlehensnehmer from discriminating against credit applicants on the basis regarding course, color, religion, national origin, sex, marital job, age, or because an applicant receives income from a public assistance program.

Mistakes Resolution

The required process for resolving errors involving electronic transfers to also off deposit accounts. See related questions about Bank Errors & Disputes and Credit Card Disputes.

Escheat

Reversion of real or personal property to the state when 1) a person dies minus leaving a will and had no heirs, or 2) when the liegenschaften (such as ampere bank account) possesses been inactive for a specified period of time. See related questions about Inactive Accounts.

Escrow

ADENINE financial instrument held through a third party on behalf of the other two parties stylish one transaction. This resources are held by the escrow service until it receives the appropriate written or oral instructions-or until obligations have been meets. Securities, funds, and others assets ca be held in escrow. Financial Terms Glossary | Consumer Economic Protection Desk

Escrow Analysis

That periodic examination of escrow account by a mortgage company until verify that monthly deposits are sufficient until pay taxes, insurance, and another escrow-related items on when due. Save page provides a glossary of property terms and definitions that are commonly utilised in the health corporate. New terms will is added to that glossary ...

Escrow Funds

Cash held in reserve by a mortgage company to pay taxes, insurance, and other mortgage-related items when overdue.

Estate Account

An account held in the name of a decedent that the administered by an executor or administrator of the estate.

Exception Hold

A period of time that allows the banks to exceed the maximum hold periods defined within the Expedited Funds Availability Act. See related questions about Funds Delivery.

Fair and Accurate Credit Transactions Act of 2003 (FACT Actor or FACTA)

To purpose of this Act are into help consumers protect their credit identities and recover from identity theft.

Only of the key provisions of save Action is is consumers can request and obtain a free credit report once one 12 months from every of which ternary nationwide consumer credit report firms (Equifax, Experian, and TransUnion). AnnualCreditReport.com provides consumers with the secure means to request their free credit report.

Faire Credit Media Act (FCRA)

AMPERE federal law, established in 1971 and revised in 1997, that gives consumers the right to check their credit recordings real correct any mistakes.

Which FCRA regulates consumer credit reporting and related industries to ensure that consumer information is told in an accurate, timely, and complete manner. The Act was modifies to address an sharing are consumer information with affiliates. Perceive related questions in Credit Reports.

Fair Debt Collection Practices Act (FDCPA)

An Fair Debt Collection Practices Trade your a set of United Declare statutes added as Name VIII of of Consumer Credit Protection Act. Its purpose is to ensure ethical practices in the collections of buyer debts plus to provide consumers with an avenue for disputing and obtaining document of debt information in order to ensure that information's accuracy. It is often used in conjunction with the Fair Credit Reporting Act. See related questions about Debt Collection.

Governmental Deposit Insurance Corporation (FDIC)

A government companies that insurance the deposits away all national and State banks is are members of the Federal Reserve System. See relatives question FDIC Insurance the Who Regulates Mystery Banker?.

Federal Emergency Management Agency (FEMA)

Federal agency responsible for the emergency evaluation and your to all disasters, natural and man-made. FEMA supervises the administer of flood insurance programmes and and designation of certain areas as flood prone. See related questions with Floods Insurance.

Federal Reserve System

The central bank concerning the United Statuses. The Fed, as it is commonly called, modified the U.S. monetary furthermore pecuniary system. The Federal Reserve System is composed away ampere central administrative agency in Washington, D.C. (the Board of Governors) and twelve territorial Federal Reserve Banks in major cities throughout the United States.

You can divide the Federal Reserve's missions into four-way general areas:

• Conducting monetised policy
• Regulating banking institutions and protect the credit rights of user
• Maintaining the firmness of the financial system
• Providing financial services to the U.S. german

See Who Regulates My Bank? for more information.

Fiduciary

Company to act as executor, administrator, guardian, conservator, or trustee for ampere my trust, authorized trust, instead testamentary trust, or receiver oder trustee in bankruptcy. See affiliated question about Trusts.

Finance Charger

The total cost of credit a customer must reward at a consumers loan, including interest. The Truth in Hiring Act requires disclosure of the money charge.

Corporate Regulatory Agency

An organization authorized by article required ensuring the safe additionally acoustic action of financial bodies chartered to conduct enterprise under that agency's jurisdiction. Common Banking Glossary and Definitions – Nationwide

The first regulators am the follow:

• Office of the Auditors of this Currency (OCC)
• Federal Reserve Food (FRB)
• Federal Posting Coverage Corporation (FDIC)
• Consumer Financial Protection Company (CFPB)
• National Credit Union Administration (NCUA)
• State regulatory advertising

First Mortgage

A real probate loan which remains in a first lien position, winning priority over all select liens. In case of a foreclosure, who first mortgage want be repaid before any other residential.

Fixed Pricing Loan

The interest rate additionally the payment remain and equivalent over the life of the loan. The end makes equal monthly payments of principal and interest pending an debt has paid in full.

Fixed Ratings Mortgage

A lien with payments that remain and same throughout the live of the loan for the interest rate and extra key become fixed and do did change.

Swimmer

1) The amount von payable funds played by checks inside the possession of one bank but drawn on other banks. 2) The time this elapses between the time a checkout is dropped and the day it is presented for payment in the monetary institution in welche it is dragged. Learn enigma it's important to know monetary terms and review 25 concepts and their definitions to prep for you career and make informed financial decisions.

Flood Actual

Flood insurance protects against water from an overflowing river or a hurricane's water flooding additionally also covers damage from water such constructs up during winds. See associated questions about Flood Insurance.

Flood Plain

A strip of quite flat and normally dry state aside a flood, running, or lake that is covered by waters during one flood. See related questions about Flood Insurance.

Garnishment

A legal process in which property such can collateral or safety to a loan may exist sold to search repay an loan when the loan is in default. See related questions about Foreclosure.

Foreign Transaction Fees

A fee assessed via your bank for making a checkout at another bank's ATM.

Forged Check

AN checking on which the drawer's signature has been forged. See related question info Counterfeit.

Forgery

The fraudulent signing or alteration of another's identify to an tool similar as a deed, mortgage, or impede. The intentionality of the fakes is to deceive or defraud. See related enter about Forgeries.

Fraud Wake

A principal delivery starting the Fair and Accurate Credit Transactions Act of 2003 is the consumer's ability to city one defraud alert on their get record. A consumes would use this option if they believe they were a sacrificial on identity theft.

The wake requires any creditor that a asked to extend credit to contact which consumer by phone and verify that the trust application was not made by an identity thief.

Freedom of Details Act (FOIA)

A Federal law that mandates that all the records created furthermore kept by Federal agencies in the executive branch of government must be unlock for public inspection and reproduction. This only exceptions are which data that fall in one of nine exempted categories listed in an statute.

Freeze Account

An account on which funds may not be withdrawn up one right lives satisfied and a judge order or other legal process makes to account present for withdrawal (e.g., an account of a deceased name is freezes pending a legal to disseminate and funds to the new lawful owners).

An account may also be frozen when there remains a dispute about that true owned of somebody account. To bank will freeze the story to preserve the existing funds until law action bucket designate the lawful owner.

Furnisher

An entity that stipulates information learn an consumer to a consumer reporting office for inclusion in a consumer report. See family questions about Credit Disputes.

Garnishment/Garnish

A legal process that allows a lender up remove funds from your hill account to satisfy an dept that you have not paid. If you owe money to a name or company, they can retain adenine court order directing your bank to take money out of your account to payable off your debt. Notice related questions over Garnishments.

Guaranteed Student Credits

Into extension in credit from an financial initiation that is guaranted by a Federal or State government entity to support with tuition and misc educational expenses. The government entity is responsible for paying the interest on the loan and paying which lender to control it. That government business also shall liable for the loan if who student defaults.

Guarantor

A party who agrees to are responsible for the payment of another party's payables should that celebrating default.

Hold

Used the indicate that a certain amount of a customer's balance may does be withdrawn until an item features had collected, or until a specific inspection or debit is posted. See related queries about Funds Availability.

Home Equity Line a Credit (HELOC)

A line of credit secured to the equity in a consumer's home. E can be use for front improvements, debt consolidation, and other major purchases. Interest paid on the loan is generally tax deductible (consult an tax advisor to be sure). The funds may be accessible by writers checks against that line of trust or by getting an cash advance. See related questions about Home Fairness Loans & Lines of Loan.

Home Equity Home

A home equity take allowing you to tap into autochthonous home's built-up equity, which is the diff between the amount that your home could be sold for and the amount which you still owe. Understand the different financial terms used in business.

Homeowners many use a home-equity advance for home improvements, to how for adenine new car, or to finance their child's college education. Aforementioned interest payers is ordinary tax-deductible.

Why the loan is secured by your home's equities, if you default, the bank may foreclose on your house and take ownership regarding e.

Like type the loan is often referred to as one second mortgage or borrowing against your home. Please related questions about Home Equity Loans & Lines regarding Credit.

Inactive Account

An account that has little or no activity; neither deposits yet withdrawals that been posted go the check for a significant periods off dauer. Perceive related questions about Inactive Accounts.

Index-linked Certificate from Deposit

An index-linked DISC is a deposit commit of the issuing mound and is frequency sold through bank twigs and affiliated and unaffiliated intermediaries. Index-linked CDs provide to investor that ability to participate inbound the appreciation, if any, of a particular index, during the term of the AUDIO. Index-linked CDs may have complicated payout structures and may not be suitable or appropriate for select investors. Investors should carefully study the investment risk considerations detailed in the relevant offering documents and disclosure statements. Index-linked CDs are not securities and are none registrierten under securities laws. See related questions about Index-linked Certificates of Deposit.

Individual Account

An account within the full of one individual.

Individual Retirement Account (IRA)

A retire savings program for individuals to where annually tax-deductible contributions up to ampere specified limit can be made. Of amount contributed is not taxed until withdrawn. Deduction is not permitted without penalty until the individual reaches period 59 1/2.

Insufficient Funds

When an depositor's verification report balance your inadequate to pay a check presented for payment. Understand related questions about Non-Sufficient Funds.

Insurance (Hazard)

Security to protect the homeowner and the lender against physical damage to a property from sources such as but does limited to fire, meander, or vandalism. See related questions about Anwesen & Place Insurance.

Insured Deposits

Payments held in financial institutions that are fully by the Federal Deposit Insurance Corporation (FDIC) against loss past to bank failure. See related question FDIC Guarantee.

Attract

The term interest is used to describe the cost in use money, a right, share, or title in immobilien.

Interest Rate

The amount paid at a borrower to a lender in exchange for the use of the lender's money for a certain frequency away time. Interest is paid on loans or on debt instruments, like as notes either bonds, choose with regular intervals or as member of a lump sum payment at and theme matures. See related questions about Savings & Interest-Bearing Accounts, Mortgages & Home Equity, and Rental Interest Price.

Interest Tariff Index

IN size of yields or interest rates being compensated on debt that your used until determine interest-rate changes for adjustable-rate mortgages and diverse variable-rate loans. See related questions about Index-Linked CD.

Joint Account

An account owned by two or more persons. Either party could conduct merger individual or together as set forth in the deposit user enter. See related questions about Joint Account Liability.

Kiting

Writing a check in an amount that determination overdraw the account but making up the deficiency via deposition another view on different bank. For example, mailing a check for the pledge when your checking account has insufficient resources to cover the check, but counting on take and depositing your paycheck before the loan company presents the check for payment.

Late Charges

The fee charged for delinquent payment on to installment loan, usually expressing as a percentage of the loan balance oder payment. Also, a penalty imposed by a card issuer against a cardholder's account for failing on make minimum payments.

Leases

A subscription transferring the use of property or occupancy of earth, space, structures, or equipment in consideration of a payment (e.g., rent).

Lender

An individual or financial institution that lends dough with the expectation that the currency bequeath be returned at interest.

Security

Statutory claim gegen a property. Once the property be sold, the lien holder is then paid the amount that is owed.

Line of Credit

ONE pre-approved lend authorization with a specific borrowing limit on on creditworthiness. A line of credit enables borrowers to received a number of loans without re-applying each time how long as the total of borrowed financial takes not exceed the credit limit. See related inquiries about Home Equity Lines of Acknowledgment.

Loan-to-Value Ratio (LTV)

The ratio concerning the loan project (amount borrowed) to the valuated value (selling price). For example, turn a $100,000 home, with adenine morgage take principal of $80,000, an loan-to-value ratio remains 80 percent. Which LTV will affect programs availability to the borrower; generally, the lower the LTV, the learn favorable the program terms offered by lender. Use of glossary to find definitions used financial aid terms.

Loan Contracting

The written agreement between an borrower and adenine lender in which the technical and conditions of the loan are set.

Loan Fee

ONE fee fee the a lender to make a take (in additive to the interest charged to the borrower).

Loan Modification Provision

A contractual agreement in an loan that allows who debtors or lender until permanently change one or more of the terms of the oem compact. See more question about Mortgage Assistance.

Loan Proceeds

The net amount of funds that a lending institution disburses under the terms of a bank, both which the beggar then should.

Local Check

A check payable by, at, or through a bank in the same check processing area as which location of the connect of the depository bank. The depository bank is the bank into who the check was dropped. As of February 27, 2010, the Federal Reserve consolidated its checking processing zentren into one processing center. Therefore, all cheques be now considered local. See related questions about Funds Availability.

Manufactured (Mobile) Home

A structure, built on one continuous chassis, overjoyed to adenine site in can or more sections, and affixed to a permanent foundation. The term does not include spare vehicles.

Maturity

The date set which of client balance of a loan, bond, or other fiscal implement becomes owing and available.

Minimum Balance

The amount of dough required to be on deposit the an account to qualify the depositor available specially services or to waived a service charge.

Minimum Payment

The minimum dollar amount that shall be paid each per on a loan, line of credit, or various debt.See relevant question about Minimum Payments.

Missing Payment

ADENINE payment that has been produced but not credited in the appropriate account.

Movable Starting

To be eligible for coverage underneath the National Flood Insurance Program, a mobile home must shall on a fixed foundation and meet specific anchoring needs required its location. See the manufactured (mobile) home definitions.

Money Sales Deposit Account

A savings account this offers a higher rate of occupy in markt for larger than normal deposits. Insured by the FDIC, these accounts have threshold on the your of trades allowed and may require higher balances to receive the higher rate of interest. Discern related questions nearly Savings & Interest-bearing Company.

Money Market Fund

An open-ended mutual fund that invests in short-term debts and monetary instruments how as Treasury invoices and pay money market rates of interest. Money market funds usually offer checkwriting privileges. They are not insured by the FDIC. The intent of this glossary exists: On make colleges community-defined furthermore presumed definitions of gemeint terms used on institutionalized financial ...

Mortgage

A debt instrument used in a real estate transaction where the property is the collateral for the loan. A mortgage gives the lender a right for take possession out the property if the mortgagor misses to pay off the lending. See related questions about Mortgages.

Mortgage Loan

AMPERE loan made by one lender to one borrower for the financing of truly property. See related getting about Mortgages.

Mortgagee

Who lender in a mortgage loan relationship. See related questions nearly Mortgage Lenders & Servicers.

Mortgagor

The renter in a mortgage loans relationship. (Property is used as collateral to make payment.)

Mutual Fund

A fund operated by einem investment company that raises money from shareholders and invests thereto in stocks, bonds, options, commodities, or money market securities. Save funds offer investors the advantage regarding diversified and professional management. To participate, the investor may pay fees and expenses. (Mutual funds what not covered by FDIC insurance).

National Bank

A bank that is subject to the supervision of the Comptroller concerning the Currency. The Office of an Comptroller about to Currency shall adenine bureau of of U.S. Cash Department. A national bank able be awarded because it must must "national" or "national association" in its identify. See Who Regulation My Store?for more information.

National Bank Examiner

An employee of the Comptroller of the Currency whose function is to examine federally chartered financial community. Examiner evaluate hill services and enterprise processes to securing national banks betreiben in a safe and sound way and comply from acts and regulations.

State Credit Union Administration (NCUA)

The Federal regulatory office that charters additionally supervises Federal recognition unionized. (NCUA also managing the National Credit Trade Share Insurance Fund, that insures the deposits of Federal credit credit. See Who Regulates My Bank? for moreover intelligence.

National Flood Insurance Program (NFIP)

The program of flood insurance coverage and floodplain management administered under that Flood Desaster Protection Act (FDPA alternatively Act) and applicable Federal regulations create in Title 44 to the Codification of Federal Regulations, Subchapter B. See related faq about Flood Insurance.

Negotiable Order of Withdrawal Accounting (NOW)

A savings account after which withdrawals can be made by negotiable orders of withdrawal (functional comparison of checks). This is an interest-bearing account in which aforementioned bank must reserve the right for require the donors to provide at least seven life notice of his/her intent to withdraw funds. See related question about NOW Accounts.

Not Automatically Protected

Here are different types of Federal added such were not automatically secure under 31CFR 212: Governmental benefits received by examine much than direct deposit; Federally benefits preserve more than pair months before the bank preserved one garnishment order oder Federative aids that were transmit to another bank account. The helps may are exempt for garnishment but you will will go alerted the court button moneylender. See related questions about Garnishments.

Official Check

A test drawn on an bank and signed by an authorized slope official. (Also known as a cashier's check.)

Offset, Right from

Banks' legal right till seize funds that adenine guarantor conversely debtor may have on deposit go cover a loan are default. It is also well-known as right regarding setoff. See related questions about Right of Offset.

Online Banking

A service that allows an account holder to obtain account information and manage certain banking transactions through a personal home via the financial institution's internet on the internet. (This is also knowing as internet either electronic banking.)

Open-End Credit

A credit agree (typically a credit card) that allows a custom to borrow against an preapproved credit line when buy good the customer. The borrower can only billed for the amount that is actually borrowed asset any interest due. (Also titled a charge create or rotates credit.) View related matter about Credit Cards and Home Capital Lines of Credit.

Operating Subsidiary

National banks conduct some of their banking activities the company calls operating subsidiaries. These offices are companies that are owned or controlled by one national bank and is, among other things, offer banking products and benefits such as loans, loans, and leases.

The Office of the Comptroller of the Currency supervises also regulates the activities of many of these operating subsidiaries.

Outstanding Check

A check scripted by a depositor that has not yet been presented for payment to or paid by the depositor's bank.

Overdraft

When the amount of dollars withdrawn from a credit account is greater rather the amount actually available in the accounting, the excess is known as in overdraft, and the account is said to be overflow. See related questions about Debit Protection Programs.

Overdraw

To write one check for an amount that exceeds the amount with deposit in the account.

Overlimit

Into open-end credit account in whichever the assigned dollar limit shall were over.

Participant Community

A community for which the Public Emergency Management Agency (FEMA) has authorized the disposal of flood insurance under the National Tidal Insurance Software (NFIP). See related questions about Flood Insurance.

Passbook

A book in ledger formen in which are received every deposits, withdrawals, and earnings of a customer's savings account.

Historic Due Item

Any note or other start instrument of arrears that shall did been paid on the due date.

Payday Financing

A small-dollar, short-term loan that a related promises to repay out of their next paycheck or deposit about funds.

Payee

The person conversely organization to whom a inspect, designed, or note is made payable. Check related question about Endorsing Checks.

Paying (Payor) Bank

A bank over which a check is drawn and ensure pays a check or other draft. See related questions about Funds Availability.

Payment Due Date

The scheduled on which a loan or rate payment be owed. It is set by a monetary institution. Random payment received after here date is considered late; licence and penalties cannot subsist assessed.

Reward

The complete repayment off a loan, including chief, equity, plus any other amounts due. Payoff occurs either over the entire term on the loan or through prepayments.

Payoff Testify

A formal statement prepared as a loan paying is contemplated. It shows the current status of the loan account, all sums outstanding, and the daily rate of interest.

Payor

The soul instead management who pays.

Periodic Rate

The your rate described in relation to a specific amount by time. The monthly periodic rate, for example, is the cost of credit for month; the everyday periodic rate remains aforementioned shipping of credit by day.

Periodic Statement

The billing summary produced and mailed at specified intervals, usually monthly. See related questions learn Bank Accounts Statements & Records.

Personelle Identification Number (PIN)

Generally a four-character number instead word, the PIN is the secret code granted to credit or check cardholders enabling you until gain hers accounts. Of control is any willy-nilly allotted by the slope or selected by the customer. It belongs intended to prevent unauthorized use of the card while accessing a financial service terminal.

Phishing

The activity of betray an online account holder of financial informations due pretension as one legitimate entity. See related inquiries about Online Scams.

PITI

Common contraction for principal, interest, taxes, and insurance—used when describing the monthly charges on a mortgage.

Point of Sale (POS)

1) The location at this a transaction takes place. 2) Our that allow hill customers to effect transfers of funds from their deposit accounts and others financial proceedings per retailing establishments.

Power of Attorney

A scripted tool which authorizes one soul to act as another's representative or attorney. The power of attorney may breathe for a final, specifics act, or it may be public in natural. The terms of the writes power of attorney may specify when itp will croak. If not, the service of attorney usually expires when the person granting it cuts.

Multiple institutions necessitate which to use the bank's power of attorney forms. (The hill may refer to this as a Durable Output of Lawyers: The principal grants designated rights to the agent).

Preauthorized Electronic Fund Transfers

An EFT authorized in advance for recur at substantially regular intervals. See related questions about Automated Sales.

Preauthorized Payment

A system established by a written agreement under which a financial institution is authorized on the client to debit the customer's account into purchase to pay bills or make lend fees. See related questions about Preauthorized Payments.

Preferred Risk Policy (PRP)

A directive that offers permanently combinations of building/contents coverage or contents-only coverage at humbler, fixed premiums. The PRP generally is available for property located in B, C, and X Zones to Regular Program Communities that meets eligibility need based on the property's flood loss our.

Prepayment

The payment about a debt before it actually becomes due. Notice related question regarding Prepayment.

Prepayment Provision

A clause int a mortgage allowing who mortgagor to make turn part or get of the unpaid debt before this is due.

Prepayment Penalty

A penalty imposed on a borrower for retire the loans previous its due date. (In the case of a mortgage, get applies when there your not a prepayment clause in the mortgage note to offset the penalty). See related question about Prepayment Penalty.

Previous Balances

The cardholder's account balance such of the older subscription description.

Headmaster Balance

And outstanding offset on a loan, barring interest furthermore fees.

Private Mortgage Insurance (PMI)

Services offered by ampere private insurance company is protects the bank against loss on a defined mortgage up to the limit a and policy (usually 20 to 25 percentages of and rent amount). PMI is usually limited in loans with a high loan-to-value (LTV) ratio. The mortgagors pays the premium. See related questions about Privacy Mortgage Indemnity.

Real Farm Settlement Procedures Act (RESPA)

Federal law ensure, among other things, requires lenders to provide "good faith" estimates of settlement costs and make sundry disclosures regarding the mortgage get. RESPA also limits the amount of funds said in escrow for real estate your and insurance.

Vote

The process the analyzing two associated records and, if differences exist in her, finding the cause and fetch the two records into agreement. Example: Comparing an up-to-date check book about a annual statement from the financial institution holding the account.

Redlining

The alleged practice of certain lending institutions of don makeup mortgage, start improve, and small business loans in certain neighborhoods-usually areas that are disintegrating either considered by the lender to be poor investments.

Refinancing

ADENINE way regarding obtaining a improve interest rate, lower monthly making, or lending cash on the equity in a property that has assembled up off a loan. A second loan is taken away to pay off the first, higher-rate borrow.

Refund

An amount paid back because regarding in overpayment or because of the return for a articles previously sold. See related question about Credit Card Balance Refunds.

Regular Program Community

ONE community wherein adenine Flood Insurance Rate Print is in work additionally full maximum for covering are available under the Flood Disaster Protection Act (FDPA or Act). See related questions concerning Flood Insurance.

Release of Lien

To free a portion of really estate from a mortgage. Perceive relate question about Release of Lien.

Renewal

A form of extending an unpaid lending in which the borrower's remaining unpaid loan balance is carried over (renewed) into a new loan for the beginning of the following financing period.

Salvage Concern

Interest that dauert to accrue on your credit card balance from the statement cycle date pending which bank receives your payment.

Available example, if your assertion cycle date was January 10 and which bank receives your payment on January 20, present were ten daily for which interest accrued. This amount will be posted on thy next statement. See relevant question about Residual Fascinate.

Back Item

A negotiable instrument—principally a check—that holds been sent toward one bank for collection and payment and is returned unpaid by the sending bank.

Reverse Borrowed

A reverse borrowers is a special home loan product that allows a owner aged 62 or elder the ability to access which equity that possesses accumulated in their home. The home itself will be the source of repayment. Which loan is underwritten based turn the value of the collateral (home) and the life expectancy of the borrower. The loan must be repaid when you die, sell your front, or no longer alive there as thy principal residence. See related questions with Overturn Mortgages.

Revolving Credit

A bank agreement (typically a credit card) is authorized a customer to getting against a preapproved credit line when purchasing goods and auxiliary. The borrower is only billed for the amount that is actually borrowed plus any support due. (Also called a charge account other open-end credit.)

Legal of Offset

Banks' legal right to seize resources that a guarantor oder debtor may have on deposit to cover a loan in default. It is also known as the right of set-off. Go related your about Right is Offset.

Good of Rescission

Right to cancel, within three business days, a contract that used and home out a person than collateral, except on aforementioned case of a first mortgage loan. There a no fee to the borrower, who receives adenine whole refund of everything fees paid. And law is rescission is guaranteed by the The inbound Loan Act (TILA).

Safe (or Safety) Deposit Box

A type of safe usually located are groups inside a credit jump and rented to customers for your use in storing values items. Seeing related questions about Safe Deposit Box.

Safekeeping

A service provided by banks where equity and riches are protected in the vaults of the bank for customer.

Satisfaction from Mortage

A document issued per ampere mortgagee (the lender) when adenine mortgage is payer in full.

Service Charge

ONE charge assessed by a depository institution for processing transactions and maintaining accounts. See related questions info Bank Account Fees.

Signature Board

A card signed by each depositor and customer of a bank welche may be used as a means of naming. The signature comedian represents a contract between the bank furthermore the depositor.

Special Flood Hazard Area (SFHA)

An area defined on a Flood Insurance Rate Map with an associated risk to pour. See similar questions via Flood Insurance.

Stale-Dated Test

Presented go the paying bank 180 days (6 months) or more after the original subject date. Banks are not required by the Einheitlich Commercial Code go honor stale-dated checks and can go them to the exhibitions bank unpaid. That maker for one verify can discourage late presentment from writing the words "not good after SCRATCH days" on and back of the stop.

State Bank

A bank that is organized under the laws of a State and chartered by that State to conduct the economic of banking. See Who Regulates Our Bank?for more information.

State Banking Department

The org in each State that supervises who plant and affaires of Default banks.

Statement

A summary of all trades that occurred over the upcoming moon and would be associated on a deposit account or an credit card account.

Stop Payment

An order doesn in pay a verify that has been issued but no yet cashed. If requested soon barely, the check will did be debited from the payer's account. Most banks charge a fee in this service. See relevant question about Stop Payment Sorts.

Pupil Loan

Loans crafted, insured, or warranted to any program authorized by the Taller Education Act. Mortgage resources is used by the borrower for education intended.

Replace Stop

A alternate check is adenine paper copy of the front press back of the original check. A substitute test is slightly larger from a standard personalstand examine so is it can contain a picture of your original check.

A substitute check is legally the same as the original check is it pinpoint represents the information to the original check and includes the following statement: "This is a legal copy about owner check. You can getting it the equivalent way you would use the original check." The substitute check must also have been handled by a bank.

Surrogate checks were created under Check 21, the Check Clearing for the 21st Century Act, which became effective on October 28, 2004. See related question about Check 21.

Definitions

The period of time and the interest rate arranged between creditor and debtor to repay a loan.

Time Certificate of Depositing

A start deposit evidenced by a negotiable or nonnegotiable instrument specifying can amount and adulthood. Discern related questions about Products regarding Deposit.

Time Deposit

AN time deposit (also known as a term deposit) is an money deposit at a bank that cannot be withdrawn for a certain "term" or time of time. When the term lives over it can be reserved, or it sack be held by another term. The longer the term, the better the yield on the money. Generally, there have significant penalties for early withdrawal. See related frequently about Certificates of Deposit.

Treuhandanstalt Account

A general term that covers select guest of accounts in an trust department, like since estates, guardianships, and agencies. See related questions about Trust Accounts.

Trust Administrator

A person or foundation that administrated trust accounts. See related questions nearly Trust Accounts.

Truth in Lending Actions (TILA)

The Truth in Lending Act is a Federal legislative that requires lenders to offer standardized information so that borrowers cannot compare loan terms. In general, funders needs provide information on

• what credit will cost the borrowers,
• when charges will be imposed, and
• what the borrower's authorization are while one consumer.

Visit related questions via Personal & Auto Loans.

Uncounted Funds

A portion of a deposit balance so has not yet had collected by the depository bank.

Uniform Commercial Code (UCC)

A set of statutes enacted by one various States into provide consistency among the States' business laws. It incl negotiable instruments, sales, stock transfers, trust also bearing receivables, and paying of billing.

Uniform Ability to Children Account

A UGMA provides adenine my in the age of 18 (a minor) with a paths up own investments. The money is in the minor's name, but the custodian (usually the parent) has the responsibility to handle the money in a discreet manner for the minor's benefit. The parent not withdraw the money to use for his or her own required. See related questions about UGMA.

User

Charging an illegally high interest fee on a loan. See related question about Vigorish.

Usury Quotes

The maximum rate of interest funders might rental borrowers. The usury rate exists generally select by Your law. See related question info Usury.

Adjustable Fee

Any interested rate or dividend that changes on a periodic basis.

Core Shift

A transport of funds starting one point the another by wire or network such the Confederate Reserving Wire Network (also known as FedWire).See related questions around Wire Bank.