American Bankers Association. A trade association for banks and savings associations.
Voluntary surrender of property, or a right to property, without attempting to reclaim it.
A time draft accepted by a bank, known as bankers acceptance. They are used primarily in financing international trade. Acceptances are negotiable instruments, meaning they can be sold to another party before maturity.
In a bank’s safe deposit area, access is the legal right to open a safe deposit box, and to add or remove property.
An endorsement on a check by a bank customer put there only to get the bank to cash the check for someone else, usually a non-customer. The endorser making the accommodation doesn’t benefit from the check or otherwise use it, but agrees to pay for the check if it bounces.
A deposit in a customer’s name that can be withdrawn, such as a checking account, savings account, or certificate of deposit account. Also used to refer to loan accounts such as a credit card account, mortgage loan account, etc.
The contract governing your open-end credit account, it provides information on changes that may occur to the account.
The history of an account over a specific period of time, including the debits, credits, the number of times the account was past due or over limit.
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. The signature authorizes that person to conduct business on behalf of the account.
The summary of transactions in an account over a selected period of time. Transactions include; previous balance, payments, credits, finance charges and new balance.
A regular dividend that is considered to be earned but not yet paid
Expenses which are incurred, but for which payment is not yet made, during a given accounting period.
Interest that has been earned on a bond or other fixed income security since the last interest payment was made but not yet paid.
ACH (Automated Clearing House) is a nationwide network of financial institutions that send electronic messages and deliver electronic transactions for banks and their depositors. This electronic clearing and settlement system is for exchanging electronic transactions among participating depository institutions. The most common ACH transactions are direct deposit, pre-authorized debits, cash concentration and corporate to corporate payments.
A notification by a paying bank that an item presented for payment has been paid or that cannot be honored. Also used in securities to verifying that a customer’s signature is genuine.
Also known as variable-rate mortgages. Home mortgages that have an initial interest rate is usually below that of conventional fixed-rate loans. The interest rate may change over the life of the loan as market conditions change. There is typically a maximum or ceiling and a minimum or floor defined in the loan agreement. If interest rates rise, so does the loan payment. If interest rates fall, the loan payment may as well.
Under the Equal Credit Opportunity Act, a creditor’s refusal to grant credit on the terms requested, termination of an existing account, or an unfavorable change in an existing account.
The notice required by the Equal Credit Opportunity Act advising a credit applicant or existing debtor of the denial of their request for credit or advising of a change in terms considered unfavorable to the account holder.
An organization employed by a mutual fund to give professional advice on the fund’s investments and asset management practices also called the investment adviser.
A sworn statement in writing before a proper official, such as a notary public.