See kiting.


An unethical business practice by some stock brokers where excessive trade is made in a client's account in order to generate more commission from the account. Churning prohibited by many securities laws and is judicially actionable.

Closed-end Loan

A closed-end loan is a loan given with a specified date that the debtor must repay the entire loan and interest. These loans are normally disbursed all at once in order for the debtor to buy or achieve a specific thing, and often, the...



A risk-sharing agreement between the insurer and the insured under a particular insurance policy. The insured agrees to cover a percentage of the losses up to a certain threshold level, rather than paying a fixed amount as with co-pay...


Property or assets that are committed by an individual in order to guarantee a loan. Upon default, the collateral becomes subject to seizure by the lender and may be sold to satisfy the debt.


In securing a mortgage, the borrower...

Collection Agency

A collection agency is any person or company hired to collect or attempt to collect debts due or asserted to be due to another person. Some states, like Illinois, define a collection agency as a person who engages in the collection of a debt...


A person who cosigns a check, draft or other negotiable instrument with another person or persons. Each comaker has a legal obligation to pay the entire amount due on the instrument, should one of the parties default.

Compound Interest

Compound interest refers to interest earned on prior interest from an investment. This occurs where an investor continuously earns interest on an outstanding debt owed to them or an investment compounds in value. This is in contrast to simple...

Confession of Judgment

Definition from Nolo’s Plain-English Law DictionaryUsually, a clause within a promissory note, allowing the creditor to, upon nonpayment by the borrower, get a court judgment for the amount owed and in some cases collect from the borrower's assets, all...

Conforming Loan

A conforming loan is a mortgage that is below the conforming loan limit established by the Federal Housing Finance Agency (FHFA) and abides by other restrictions of Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal...