Professional Documents
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Bank Terminology
Bank Terminology
ABARoutingNumberaseriesofnumberslocatedatthebottomofanaccountholderschecksordepositslips.
Thesenumbersidentifyaparticularaddressforaspecificbankinginstitution,aroutingaddress,whichthe
FederalReserveBankingsystemuseswhenfundstransactionsmovewithinthebankingsystem.
Amortizationtherepaymentofaloanorprocessofreducingdebtbyinstallmentswithregularpaymentsto
coverprincipleandinterest,usuallyinatermexpressedinmonths.
Assignmentthetransferofaloanfromonepartytoanother.
ACHstandsforAutomatedClearingHouse,whichisanelectronictransfer(secure&efficient)offunds
betweenfinancialinstitutions.
BalloonPaymentthefinallumpsumpaymentthatismadeatthematuritydateofaloan.
Bankruptcyaproceedinginafederalcourtinwhichadebtorwhoowesmorethanhisassetscancoveris
grantedrelieffromdebtbytransferringallassetstoacourtappointedtrustee.
BasisPointsabasispointis1/100
th
ofapercentagepoint.Forexample,50basispointsofa$10,000loan
wouldbe0.50%X10,000or$50.00.
Breachaviolationofaloancovenantorpromise.
BridgeLoanatemporaryorsecondaryloancollateralizedbyasubordinatedlienorholdonaparticularasset
(whichisusuallyforsale)inamannerthatallowstheproceedstobeusedforpurchaseofanew/differentasset
beforethepresentassetissold.
Capaprovisioninaloanagreementthatsetsalimitontheinterestratewhichcanbechargedduringtheterm
oftheloan.
CapitalAssetorImprovementanystructureorcomponentconsideredasapermanentadditiontoreal
propertythataddstoitsvalueandusefullife.
CashiersCheckacheckdrawnonthefundsofthebank,notagainstthefundsinadepositorsaccount.
However,thedepositorpaidforthecashierscheckwithfundsfromtheiraccount.Theprimarybenefitofa
cashierscheckisthattherecipientofthecheckisassuredthefundsareavailable.
CertifiedCheckapersonalcheckdrawnbyanindividualthatiscertified(guaranteed)tobegood.Thefaceof
thecheckbearsthewordscertifiedoraccepted,andissignedbyanofficialofthebankissuingthecheck.It
signifiesthatsufficientfundsareondepositandearmarkedforpaymentofthecheck.
ChainofTitlethehistoryofalldocumentsthattransfertitleofrealproperty,startingwiththeoriginalor
earliestexistingdocumentandendingwiththemostrecent.
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