Glossary

Any and all persons designated and authorized to transact business on behalf of an account. Each account holder's signature needs to be on file with the bank

A loan in which the interest rate can change during the term of the loan

The yearly cost of the amount financed, including interest and any fees, expressed as a percentage rate (also called APR)

A percentage rate reflecting the total amount of interest paid on a deposit account based on the interest rate and the frequency of compounding for a 365-day year

The act of evaluating and setting the value of a specific piece of personal or real property

The process of a borrower asking for the extension of credit from a creditor

Bank's policy as to when funds deposited into an account will be available for withdrawal

Bank's policy as to when funds deposited into an account will be available for withdrawal

The balance of an account less any hold, uncollected funds, and restrictions against the account

The difference between the credit limit assigned to a cardholder account and the present balance of the account

Any item of economic value owned by an individual

An individual who signs a promissory note and assumes liability to repay under the terms of that note

The month, date, and year when a periodic or monthly statement is generated

A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract

A bankrupt person, firm, or corporation has insufficient assets to cover their debts. The debtor seeks relief through a court proceeding to work out a payment schedule or erase debts

Periodically the bank provides a statement of a customer's deposit account. It shows all deposits made, all checks paid, and other debits posted during the period (usually one month), as well as the current balance

The process of moving an outstanding balance from one credit card to another. This is usually done to obtain a lower interest rate on the outstanding balance.

A deposit account that pays higher interest rate than a savings account

A certificate signed by a lender indicating that a mortgage has been fully paid and all debts satisfied, also known as release of lien

A bank loan to a business

A loan from a bank, credit union or finance company to a person

A contractual agreement in which a borrower receives something of value now and agrees to repay the lender at some later date

Agency which collects and sells information about the creditworthiness of individuals

A report which will contains information about a person’s credit history

A measure of credit risk calculated from a credit report using a standardised formula

A person or organisation which extends credit to others

A demand deposit account subject to withdrawal of funds by check

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

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

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

A debit may be an account entry representing money you owe a lender or money that has been taken from your deposit account

A debit card allows the account owner to access their funds electronically. Debit cards may be used to obtain cash from automated teller machines or purchase goods or services using point-of-sale systems

A liability or obligation in the form of a loan, owed by one person to another person and required to be paid by a specified date

A loan, usually secured with the equity in a home, used to pay off other, higher interest debts resulting in one monthly payment

A deposit of funds that can be withdrawn without any advance notice

An itemised memorandum of the cash and other funds that a customer presents to the bank for credit to his or her account

A payment that is electronically deposited into an individual's account at a depository institution

The person who writes a check or draft instructing the drawee to pay someone else

A loan in which the interest rate does not change during the entire term of the loan

The amount of uncollected funds represented by checks in the possession of one bank but drawn on other banks

An account on which funds may not be withdrawn until a lien is satisfied and a court order or other legal process makes the account available for withdrawal

A party who agrees to be responsible for the payment of another party's debts should that party default

An account that has little or no activity; neither deposits nor withdrawals having been posted to the account for a significant period of time

An account in the name of one individual

When a depositor's checking account balance is inadequate to pay a check presented for payment

The term interest is used to describe the cost of using money, a right, share, or title in property

A loan that is repaid with a fixed number of periodic equal– sized payments

The fee charged by a lender to borrower money, expressed as an annual percentage of the principal

A leasing agreement whereby the bank buys an item for a customer and then leases it back over a specific period

The monetary obligations that you owe to others

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

A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment

The written agreement between a borrower and a lender in which the terms and conditions of the loan are set

A fee charged by a lender to make a loan (in addition to the interest charged to the borrower)

The net amount of funds that a lending institution disburses under the terms of a loan, and which the borrower then owes

Security agreement where house is pledged for a loan

The minimum dollar amount that must be paid each month on a loan, line of credit, or other debt

A payment that has been made but not credited to the appropriate account

When the amount of money withdrawn from a bank account is greater than the amount actually available in the account, the excess is known as an overdraft, and the account is said to be overdrawn

An open-end credit account in which the assigned dollar limit has been exceeded

To write a check for an amount that exceeds the amount on deposit in the account

The date on which a loan or instalment payment is due. It is set by a financial institution. Any payment received after this date is considered late; fees and penalties can be assessed

The complete repayment of a loan, including principal, interest, and any other amounts due. Payoff occurs either over the full term of the loan or through prepayments

The interest rate described in relation to a specific amount of time. The monthly periodic rate, for example, is the cost of credit per month; the daily periodic rate is the cost of credit per day

A card signed by each depositor and customer of a bank which may be used as a means of identification. The signature card represents a contract between the bank and the depositor

A deposit account that pays interest and allows for unlimited deposits and withdrawal.

A summary of all transactions that occurred over the preceding month and could be associated with a deposit account or a credit card account

Loan document pledging asset for a loan

Similar to an asset backed bond, Sukuk is a form of commercial paper that provides an investor with ownership in an underlying asset, and a return based on this ownership

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

A time deposit (also known as a term deposit) is a money deposit at a bank that cannot be withdrawn for a certain "term" or period of time. When the term is over it can be withdrawn, or it can be held for another term

A loan in which the interest rate can change during the term of the loan

The rate of return on an investment