A detailed explanation of Rollover Loans, a type of mortgage loan commonly used in Canada, that blends long-term amortization with short-term adjustable interest rates.
A rubber check is a check that cannot be processed because there are insufficient funds in the account to cover the value written on the check. This article explores its implications, historical context, examples, and related financial terms.
The Rule of 78s is a method used to calculate the interest charged on installment loans with add-on interest. It is based on the sum of the digits from 1 to 12 for a 12-month loan.
A reference to see Savings and Loan Association for detailed information about S&L entities, their operations, history, and significance in finance and banking.
Safekeeping refers to the storage and protection of assets, valuables, or documents. This can involve a bank safe deposit box, brokerage firms holding stock certificates or bonds, tracking trades, and providing periodic statements of positions.
An instrument for recording and acknowledging the final payment of a mortgage loan, confirming that the lender acknowledges the debt has been satisfied.
Institutions primarily providing loans for purchasing and building homes, also known as building and loan associations, now offering various loans.
An in-depth examination of savings banks, their functions, history, and comparison with similar institutions such as Savings and Loan Associations.
A seasoned loan refers to a loan bond or mortgage on which several payments have been collected. It is generally easier to sell a seasoned mortgage compared to a new one that has not yet accumulated a payment history.
Dive into the intricacies of second liens or second mortgages, their uses, types, historical context, and special considerations.
Explore the Secular Trust, a robust alternative to Rabbi trusts, providing enhanced security for executives in nonqualified deferred compensation plans.
A comprehensive guide to Secured Debt, its types, advantages, disadvantages, and real-world examples.
Securitization is the financial process of pooling various types of contractual debt such as mortgages, auto loans, or credit card debt obligations and selling their related cash flows to third-party investors as securities.
Exploring senior debt, including its definition, types, and role in corporate finance
Senior security denotes a financial instrument with priority claim over junior obligations and equity in a corporation's assets and earnings. This term is fundamental in the hierarchy of claims during liquidation.
A detailed entry on Series I Bonds, which are savings bonds designed to protect the purchasing power of investments and provide a guaranteed real rate of return.
A comprehensive examination of Signature Guarantee, its importance, process, applications, and related elements in verifying the authenticity of signatures for financial transactions.
Simple interest is a method of calculating the interest on a principal sum where the interest is not compounded. Compared to compound interest, simple interest involves paying interest only on the principal.
An in-depth exploration of the term 'squeeze', including tight money periods, cost challenges, and related financial phenomena.
A comprehensive explanation of the standby fee, which is a sum required by a lender to provide a standby commitment, and the conditions under which it may be forfeited.
An in-depth explanation of standby loans, including their purpose, characteristics, and implications in financial contexts.
A State Bank is a bank organized under a charter granted by a regulatory authority in one of the 50 U.S. states. This is contrasted with a National Bank, which is federally chartered.
A comprehensive overview of the Statement of Condition in Banking and Finance, detailing the assets, liabilities, and equity as of a specific date.
A detailed explanation of the Stock Power Power of Attorney form, its purpose in transferring ownership of a registered security, and its use in financial transactions.
A Stock-Transfer Agent specializes in managing and executing the transfer of stock ownership and maintaining comprehensive records of shareholders.
A comprehensive overview of the process and implications of requesting a Stop Payment on a check, including legal considerations, historical context, and FAQs.
Straight Debt refers to a debt instrument with a fixed repayment schedule, fixed interest rate, and no convertibility features.
A stress test is an evaluation to examine banks' ability to endure economic shocks without needing additional capital infusions, focusing on financial stability during severe economic downturns.
Comprehensive definition and explanation of subordinated debt, its types, special considerations, examples, historical context, and related terms in finance.
SWIFT is a global network used by financial institutions to confirm international funds transfers, ensuring secure and standardized communication between banks worldwide.
A Tax and Loan (T&L) Account is an account held at private-sector depository institutions in the name of the district Federal Reserve Bank, serving as a repository for operating cash available to the U.S. Treasury.
A Tax Anticipation Bill (TAB) is a short-term obligation issued by the U.S. Treasury, offering a secure investment option for corporations to manage their tax payments efficiently.
Detailed explanation of teaser rates, often applied to mortgage loans, specifically adjustable-rate mortgages (ARMs), and their implications.
Telegraph Money Order is a method of sending money urgently by placing cash with a telegraph office, which then wires the destination office to disburse the cash or an equivalent money order.
A Federal Reserve funding facility to support the issuance of Asset-Backed Securities (ABS) and promote lending to consumers and small businesses by providing non-recourse loans.
A comprehensive overview of Term Certificates, also known as Certificates of Deposit (CDs), focusing on those with a long maturity date ranging from one to ten years.
Detailed Guide on the Termination of a Pension Plan including standard and distress termination with examples and special considerations.
An in-depth look at third-party checks, their usage, and considerations in banking transactions.
Thrift institutions, encompassing savings banks and savings & loan associations, are crucial to the financial industry, supporting personal savings and homeownership.
A Time Deposit is a savings account or certificate of deposit held in a financial institution for a fixed term, typically with withdrawal restrictions or penalties for early access.
A comprehensive look at Totten Trusts, how they work, and their implications in estate planning, including taxation and control retained by the grantor.
A comprehensive guide on Trade Acceptance, a time draft guaranteed by a non-bank firm and sold in the secondary money market. Learn its definition, types, historical context, and comparisons with similar financial instruments.
A comprehensive overview of Trading Authorization, the document that grants brokerage firm employees the authority to execute transactions on behalf of customers.
A transfer agent is an individual or firm responsible for maintaining records of a corporation's shareholders, handling the issuance and cancellation of stock certificates.
An in-depth look at Treasury Notes, including their characteristics, types, benefits, and comparative analysis with other investment options.
Truncation in Banking refers to eliminating the service of returning canceled checks to customers. In Computing, it involves dropping the digits of a number to the right of the decimal point.
A trust account is a separate bank account, segregated from a broker's own funds, in which the broker is required by state law to deposit all monies collected for clients. In some states, this is referred to as an escrow account.
A Trust Certificate is an instrument issued to finance the purchase of railroad equipment, under which trustees hold title to the equipment as security for the loan.
A detailed guide on Trust Companies, their roles, functions, regulations, and significance in financial and estate planning.
Uncollected funds refer to the portion of a bank deposit made up of checks that have not yet been collected by the depository bank. Payment acknowledgment has not yet been received from the bank on which the check was drawn.
Comprehensive explanation of the term 'Underwater' in various financial contexts, including loans, options, and investment portfolios.
Detailed explanation of underwriting spread, including factors influencing it and its importance in primary distribution of securities.
A comprehensive look into Undivided Profit, a crucial element on a bank's balance sheet representing profits that have neither been paid out as dividends nor transferred to the bank's surplus account.
Uniform Standards of Professional Appraisal Practice (USPAP) are a set of standards established by the Appraisal Foundation that guide state-certified and organizational appraisal professionals in preparing appraisal reports.
Unit Investment Trust (UIT) is a type of investment vehicle registered with the SEC under the Investment Company Act of 1940. UITs purchase a fixed portfolio of securities, including bonds and stocks.
An in-depth guide to understanding unsecured debt, a financial obligation not backed by any specific collateral. Learn about its types, implications, examples, historical context, and more.
An in-depth exploration of upside-down mortgages, where the loan balance exceeds the property's market value, leading to negative equity.
Comprehensive explanation of value date in banking and foreign currency transactions, including its significance, examples, historical context, and related terms.
A comprehensive understanding of variable interest rates, their types, applications, historical context, and comparisons to fixed rates.
Vault cash refers to the physical currency that a bank retains on its premises to meet daily transactional needs and fulfill regulatory reserve requirements set by the Federal Reserve.
A comprehensive overview of wealth, detailing its definition, types, components, and related concepts such as net worth and income.
The Weighted Average Cost of Capital (WACC) is an essential financial metric used to determine a corporation's cost of capital, accounting for each component's weight proportionately.
An in-depth exploration of Whole Loans in the secondary mortgage market, their characteristics, types, historical context, applicability, and comparisons to pass-through securities.
A Wire House is a brokerage firm with a network of branch offices linked by an advanced communications system that allows rapid dissemination of financial market information.
A comprehensive overview on the act of withdrawal, including its types, processes, historical context, and relevant examples
Without Recourse: A term used in factoring receivables or endorsing a note to signify that the holder is not to seek repayment from the debtor personally in case of nonpayment, only from the collateral.
A comprehensive guide to understanding workouts, a mutual effort by property owners and lenders to avoid foreclosure or bankruptcy following a default, including reductions in debt service burden and considerations during economic downturns.
Understanding Yield to Average Life: Calculation, Importance, and Application in Bond Investments
A comprehensive guide to understanding the 2/28 adjustable-rate mortgage (ARM), covering its structure, benefits, drawbacks, and practical applications in real estate finance.
An in-depth look at the 2000 investor limit rule set by the SEC, including its definition, how it works, and a practical example.
A comprehensive guide on the 28/36 rule, which helps individuals and households measure their income against debt to ensure they meet ideal debt limits for credit applications. Learn what it is, how to use it, and see practical examples.
The 3-6-3 Rule refers to a slang term for the informal banking practices prevalent during the 1950s through the 1970s, characterized by non-competitive and simplistic conditions within the industry.
A comprehensive explanation of the 3/27 Adjustable-Rate Mortgage (ARM), detailing its structure, benefits, drawbacks, and practical applications in the real estate market.
Explore the five Cs of credit—character, capacity, collateral, capital, and conditions—and understand their significance in setting loan rates and terms.
Explore the intricacies of 5/1 Hybrid Adjustable-Rate Mortgages (ARMs) with detailed examples, historical context, comparisons, and more. Learn how these mortgages work and what to consider when choosing one.
A comprehensive guide to understanding the 80-10-10 mortgage strategy, its benefits, and practical examples.
Comprehensive explanation of the acceleration clause in loan agreements, including its definition, types, examples, historical context, and applicability.
An in-depth guide to account balance, its calculation, significance in personal finance, and common queries answered.
An in-depth exploration of trust accounts, including their definition, types, benefits, and a step-by-step guide on how to set one up.
Explore the detailed definition, various uses, and practical examples of an account statement. Understand its importance in financial management and record-keeping.
Accounts Receivable Financing is a financing arrangement where a company uses its receivable balances to obtain funding. This article explores its definition, structuring, types, benefits, and real-world applications.
Discover a detailed explanation of accrued interest, its significance in financial obligations, and illustrative examples to comprehend its practical applications.
A comprehensive guide to understanding the Actual Deferral Percentage (ADP) and Actual Contribution Percentage (ACP) tests, designed to ensure that 401(k) retirement plans do not disproportionately favor higher-paid employees.
Explore the definition of add-on interest, learn the formula used, and understand the costs involved compared to simple interest. Deep dive into the differences and implications for borrowers.
The Advanced Internal Rating-Based (AIRB) approach is a sophisticated method used by financial institutions to internally manage and assess credit risk. This approach allows banks to use their own empirical models to estimate key credit risk parameters.
An in-depth guide to American Express cards (AmEx), including definitions, types of cards, benefits, fees, usage examples, and historical context.
An in-depth look at amortized loans, including their definition, how they work, the different types, an example, and their applications in finance.
Discover the meaning, calculation, and practical applications of the Annual Equivalent Rate (AER), a crucial metric for comparing savings accounts and investment products with multiple compounding periods.
Comprehensive overview of the Annual Percentage Rate (APR), exploring its significance, calculation, components, examples, and differences from other interest rates.
Explore the concept of Annual Percentage Yield (APY), its significance, how it's calculated, and its applications in the fields of finance and banking.
A comprehensive guide to asset financing, exploring its definition, mechanics, advantages, and potential disadvantages.
An in-depth explanation of Asset Swapped Convertible Option Transactions (ASCOT), a financial instrument that strips the equity conversion portion from a convertible bond. Explore its types, uses, advantages, examples, and historical context.
Comprehensive guide to Asset-Backed Commercial Paper (ABCP), its definition, mechanism, advantages, and various applications in the financial world.
An in-depth analysis of asset-based finance, including its mechanisms, benefits, challenges, and comparisons with other financing options.
An in-depth exploration of asset-based lending, including how it works, types of collateral, real-world examples, and its key features.
Explore the comprehensive definition, roles, examples, historical context, and significance of an Asset-Liability Committee (ALCO) within banking and financial institutions.
An in-depth exploration of asset/liability management including its definition, meaning, strategies, and real-world applications.
A comprehensive overview of authorized stock, including its definition, examples, and a detailed comparison with issued stock.
An in-depth exploration of the Automated Clearing House (ACH), an electronic funds-transfer system managed by Nacha. Learn about its function, mechanism, types, benefits, and historical significance.
An in-depth exploration of automatic bill payment, covering its definition, how it works, advantages, disadvantages, and its applicability in modern financial management.
