A mortgagor is an individual or entity that pledges property as collateral to secure a loan. Understanding the role of the mortgagor is crucial in real estate, finance, and legal transactions.
Mutual Associations are cooperative financial institutions similar to Savings and Loan Associations where members' deposits represent shares, affording them voting rights and dividends.
Comprehensive Coverage of Mutual Savings Banks, including their unique characteristics, historical context, and importance in the financial landscape.
Comprehensive coverage of the National Association of Securities Dealers (NASD), its evolution into FINRA, historical context, functions, and relevance in the financial industry.
An in-depth look at National Banks, their charters, regulatory requirements, and roles within the U.S. financial system.
In-depth explanation of negative amortization, its functioning, implications, and impact on loans. Explore different scenarios, historical context, comparisons, and frequently asked questions.
An in-depth look at Negotiable Certificates of Deposit (NCDs) above $100,000, focusing on their structure, market, and uses.
An in-depth look into Negotiable Order of Withdrawal (NOW) accounts, their characteristics, applicability, and related financial terms.
An in-depth understanding of the effective interest rate on a loan which is calculated by dividing the interest by the proceeds received.
New Money refers to additional long-term financing provided to a company or government through new issues or issues exceeding the amount of a maturing issue or refunded issues.
An in-depth explanation of the nominal loan rate, its significance, and how it compares to other interest rate types.
A Nonbank Bank is an institution offering many bank-like services without being under the federal or state banking system's regulation.
An in-depth analysis of noncontributory qualified pension or profit-sharing plans, focusing on benefits, types, historical context, and applicability.
A nonmember bank is a bank that is not a member of the Federal Reserve System and is regulated by the banking laws of the state in which it is chartered.
A brokerage firm that is not a member of an organized exchange and executes trades through member firms, regional exchanges, or in the third market.
A comprehensive guide to understanding nonnegotiable instruments, their types, historical context, and key differences from negotiable instruments.
A Nonperforming Asset (NPA) is an asset that ceases to generate income for its holder. Typically applied in banking, NPAs include commercial loans that are 90 days past due and consumer loans 180 days past due.
Nonrecourse debt is a type of borrowing where the lender's recourse to the borrower's other assets is barred; the lender can only take the pledged collateral to satisfy the debt.
Understanding Nonsufficient Funds (NSF) and its implications in banking when the account holds insufficient balance to cover a transaction.
A comprehensive definition of Note and Note Payable, which are written promises to pay a specific sum of money to a designated party by a definite or determinable future date. This entry also explores related terms like Promissory Note and provides examples and historical context.
An overview of NOW Accounts, their purpose, how they function, their unique features, historical context, and related financial terms.
An obligation bond is a type of mortgage bond in which the face value is greater than the value of the underlying property, compensating the lender for costs exceeding the mortgage value.
A comprehensive definition and detailed explanation of 'Offset' as used in Accounting, Banking, Printing, and Securities.
The term 'On Account' generally refers to either a partial payment towards an obligation or a transaction conducted on credit terms. It plays a crucial role in finance, particularly in relationships between sellers and buyers where payment is deferred, and the obligation is not documented by a formal note, synonymous with an open account.
An 'On Demand' financial instrument allows the holder to request payment at any time. This includes instruments like demand notes, which lack a specified due date.
A detailed explanation of 'Open Account,' including its types, special considerations, examples, historical context, applicability, and related terms.
An in-depth exploration of Open-End Credit, commonly known as revolving lines of credit, offered to consumers by financial institutions. Understand its framework, technicalities, applications, examples, and much more.
Open-market rates are interest rates on various debt instruments bought and sold in the open market, directly responsive to supply and demand, and distinct from rates set by central banking authorities.
OPM in finance refers to the use of borrowed funds to boost returns and an options pricing model for financial derivatives.
Order Paper, a negotiable instrument that is payable to a specified person or their assignee rather than to cash or bearer. Detailed overview including types, special considerations, examples, and related terms.
Comprehensive overview of Ordinary Interest, including definition, differences with exact interest, calculations, and historical context.
An in-depth exploration of the term 'Originator,' covering its roles in banking, investment, and mortgage industries.
The concept of an outstanding balance refers to the amount of money currently owed on a debt, illustrating both its utility in financial accounting and its significance in personal and corporate finance.
Overissue refers to the issuance of shares in excess of the number authorized by a corporation's charter. Preventing overissue is a crucial function of a corporation's registrar, often in collaboration with the transfer agent.
PAPER credit refers to debt evidenced by a written obligation that is backed by property, often used in contexts where the seller finances a sale. Commonly referred to in slang simply as 'paper.'
A comprehensive overview of Parallel Loans, their mechanism, benefits, considerations, and applications in international finance.
Partial delivery occurs when a broker does not transfer the full amount of a security or commodity as specified in a contract. This article explores the concept, implications, and related terms.
A Participation Loan is a financial arrangement where multiple lenders collaborate to provide a single loan, typically coordinated and serviced by a lead bank or lead lender.
A pass-through certificate is an investment that receives income from another form, often a pool of mortgages, with income passed through to the certificate holders.
An in-depth look at passbook savings accounts, detailing their function, benefits, and implications in banking.
An overview of the Patriot Bond, a special designation given to Series EE Savings Bonds after the September 11, 2001, World Trade Center terrorist attack.
An in-depth look into the role of a Payee in financial transactions, including bills of exchange, notes, and checks.
Detailed explanation of payment as the delivery of money in fulfillment of an obligation, including types, examples, and historical context.
An exploration of the various means of payment employed by customers, including cash, check, money order, or credit card, and additional details regarding customer records and claims paid.
A detailed explanation of the payoff amount in loans, including prepayment penalties, types, calculations, and considerations.
A comprehensive guide on the penalty charged by banks or savings institutions for early withdrawal of funds from a time deposit before maturity, including its deductibility as an adjustment to gross income.
'Per Annum' is a Latin phrase meaning 'once each year' or 'annually.' It is commonly used in financial contexts to describe interest rates, growth rates, and other annual measures.
An in-depth exploration of PITI, the primary components of monthly mortgage payments, including definitions, examples, and their significance in real estate and finance.
The Positive Yield Curve describes a common scenario where long-term debt securities have higher interest rates compared to short-term debt securities of the same quality.
A postdated check is a check written with a future date, which means it is not negotiable until the date on the check becomes current.
Pre-Approval is a lender's commitment to provide a loan to a borrower based on preliminary evaluation. It signifies that a borrower is conditionally approved to receive financing.
Preclosing is a rehearsal of the closing process, where instruments are prepared and signed by some or all parties to the contract. It is often used when closings are expected to be complicated.
An in-depth exploration of predatory lending, its forms, historical context, examples, and impact on borrowers.
Preemptive rights specified in a corporation's charter grant existing shareholders the first opportunity to buy new issues of stock, ensuring their proportional ownership is maintained.
Prepayment refers to the action of paying a debt obligation before it becomes due. It is commonly seen in accounting, banking, securities, and taxation. This article explores the various aspects, benefits, and considerations of prepayment.
A detailed examination of a prepayment clause in a bond or mortgage, outlining its significance, penalties, and related features.
A prepayment penalty is a fee paid by a borrower for the privilege of retiring a loan early. It is not a tax-deductible interest expense.
The right of a borrower to repay a portion or the entirety of their loan before its scheduled maturity date. This concept is crucial in personal finance, mortgage agreements, and various types of loans.
The Prime Rate is the interest rate that banks charge to their most creditworthy customers, influenced by market forces affecting a bank's cost of funds and borrower acceptance rates. It typically becomes standard across the banking industry when a major bank adjusts its rate.
Understanding the principal amount or face value in the context of financial instruments such as bonds and loans, its implications, taxation, and related concepts.
An in-depth explanation of Principal and Interest (P&I) payments, their components, applications in financial contexts, and distinctions from other payment structures.
A comprehensive examination of Principal and Interest Payment (P&I), its calculation, components, applications, and related financial terms in the context of amortizing loans.
A comprehensive look at private issues, commonly referred to as private placements, detailing their structure, benefits, types, and regulatory considerations.
An in-depth exploration of proceeds, focusing on funds received by borrowers and sellers after deductions.
A comprehensive overview of profitability ratios, which measure earnings as a percentage of sales, total costs, total assets, or equity.
A comprehensive guide to promissory notes, an essential financial instrument in which the maker commits to pay a specified amount of money at a designated time.
An in-depth look at the Proxy Statement, which encompasses essential information mandated by the SEC for shareholders before proxy voting.
Public Housing Authority Bonds are financial instruments issued by local public housing agencies, secured by an agreement with the Department of Housing and Urban Development. These bonds facilitate funding for local housing projects by ensuring federal loans to cover principal and interest to maturity.
An in-depth examination of purchase money mortgages, their types, applications, historical context, and relevance in modern real estate transactions.
A qualified endorsement is a type of endorsement on negotiable instruments designed to limit the endorser's liability.
A qualified plan, also known as a qualified trust, is an employer-sponsored pension or profit-sharing plan that adheres to the rules set forth by the Internal Revenue Service, providing tax benefits and ensuring compliant employee benefits.
A raised check is a financial document on which the monetary amount and potentially other important information are embossed or raised above the paper surface to prevent any attempted alterations or forgeries.
Detailed Explanation of the Rate of Exchange, its Types, Historical Context, Applicability, Comparisons, Related Terms, and FAQs.
Rating involves the systematic assignment of ranks to goods, services, securities investments, credit risk, and insurance premiums based on statistical, experiential, and analytical methodologies.
An in-depth exploration of recapitalization, its types, implications, historical context, examples, and application in modern corporate finance.
Recasting a debt involves modifying the terms of an existing loan, typically initiated to avoid default. It includes changes such as adjusted interest rates and extended repayment periods.
Recourse allows a lender to claim additional money from a borrower in default, beyond the pledged collateral.
A detailed examination of recourse loans; their definition, types, usage in finance and real estate, benefits, drawbacks, and comparison with nonrecourse debt.
A comprehensive guide to understanding redemption fees, their context in finance, and their application in various investment scenarios.
Rediscount involves the re-discounting of short-term negotiable debt instruments, such as bankers' acceptances and commercial paper, that have already been discounted with a bank.
Detailed explanation of the rediscount rate, the interest rate charged to member banks when they borrow funds from the Federal Reserve System. Exploring its definitions, types, special considerations, historical context, applicability, comparisons, related terms, FAQs, and references.
A document in which the mortgagee (lender) acknowledges the sum due on a mortgage loan. It is used when mortgaged property is sold and the buyer assumes the debt.
An in-depth look into Refinanced Mortgages, their types, mechanisms, benefits, and impacts on the economy.
Refinance refers to the process of replacing an existing debt obligation with a new one, typically with different terms. This often involves selling a new bond issue to provide funds for redemption of a maturing issue, or placing a new mortgage on a house that retires an old mortgage. Refinancing is generally used to raise cash, reduce interest rates, or both.
A comprehensive guide to understanding regional banks, their functions, roles, and distinctions from money center banks.
A comprehensive guide to Registered Checks, detailing their use, mechanics, benefits, and comparisons with similar financial instruments.
Regulation U is a rule of the Securities and Exchange Commission that governs the maximum amount of credit that banks may extend for the purchase of regulated securities. This entry explores its purpose, applications, and historical context.
Regulation Z mandates lenders to disclose the Annual Percentage Rate (APR) and total cost of credit, promoting transparency and protecting consumers under the Truth in Lending Act.
Definition, types, examples, historical context, applicability, and related terms of the concept 'REMIT' in financial contexts.
A comprehensive overview of remittance, including methods such as remittance coupon books and remittance slips, and their role in financial transactions.
A detailed entry on Repurchase Agreements (Repo or RP), explaining the mechanism, uses in money markets, and role in Federal Reserve's monetary policy.
The mandated financial assets that member banks must keep in the form of cash and other liquid assets as a percentage of demand deposits and time deposits.
Reset Bonds are unique financial instruments where the interest rate is periodically adjusted to ensure the bonds trade at their original value. They are designed to mitigate interest rate risk and provide stability to investors.
Retail credit is credit issued by a retailer to customers for the payment of purchases. This can be done through third-party credit cards or in-house store cards.
A comprehensive exploration of the functions, types, and historical context of Retail Credit Bureaus, along with their role in credit risk assessment and financial systems.
A Revolving Charge Account is a credit account that allows for continuous borrowing up to a credit limit, without requiring the balance to be paid in full each month.
Comprehensive overview of revolving credit, including its definition, types, examples, and implications in both commercial and consumer banking.
A Revolving Fund is an account or sum of money that, if used or borrowed, is intended to be replenished to its original balance, so it may be spent or loaned repeatedly.
A comprehensive look into revolving lines of credit, highlighting their flexible nature, usage, and key differences from other credit forms.
A comprehensive definition of rollover, covering its applications in finance, debt management, and retirement account transfers.
