financial services

Attachment

An attachment is a court order seizing specific property. Attachment is used both as a pre-trial provisional remedy and to enforce a final judgment. 

Sometimes, courts attach a defendant's property as a provisional remedy to prevent the...

Audit

Definition from Nolo’s Plain-English Law DictionaryAn examination of the financial records of a person, business, or organization, typically done to correct careless or improper bookkeeping or to verify that proper records are being kept. Businesses and...

Auditor

Definition from Nolo’s Plain-English Law DictionaryA person authorized to conduct an audit to verify the accuracy of the financial records and accounting practices of a business or government. Many counties have an appointed or elected Auditor to make...

bail bondsman

Definition from Nolo’s Plain-English Law DictionaryA professional agent for an insurance company who specializes in providing bail bonds for people charged with crimes and who do not have the money necessary to post the entire bail with the court. Bail...

bailout

Definition from Nolo’s Plain-English Law DictionaryWhen a government, individual, or business provides emergency financial assistance to a failing business or governmental entity to keep it afloat and avoid the consequences of its collapse.

Definition...

Balloon Mortgage

A balloon mortgage is a mortgage whose payments are not large enough to pay off the entire mortage during its amortization period. Thus, the borrower must make an extra-large payment at the end of the amortization period to fully pay off the loan. For...

balloon payment

The final, oversized payment due at the maturity date of a loan.  Typically used in car or home loans, the balloon payment consists of the remaining balance due under a loan, including any unpaid principal and interest. 

bank

Definition from Nolo’s Plain-English Law DictionaryAn officially chartered institution empowered to receive deposits, make loans, and provide checking and savings account services. In the United States, banks are organized under federal or state...

building and loan association

Definition from Nolo’s Plain-English Law DictionaryAnother name for a savings and loan association. As the name implies, these institutions were originally meant to provide loans for building a house after the depositor had saved enough for a down payment...

Calendar Year Accounting Period

An accounting period, which for taxation purposes, begins on January 1 and ends on December 31 of the Gregorian calendar.

Call

Definition from Nolo’s Plain-English Law Dictionary1) The demand for payment of money. 2) A request to assemble. (See also: call option)

Definition provided by Nolo’s Plain-English Law Dictionary.

Cap

Definition from Nolo’s Plain-English Law DictionarySlang for maximum, as the most interest that can be charged on an adjustable rate promissory note.

Definition provided by Nolo’s Plain-English Law Dictionary.

Capital

The available assets of a business, including liquid assets (cash) and/or physical assets (machinery, buildings, and equipment).

 

 

Capital Account

A shareholder's or owner's account indicating the individual owner's investment plus net income from business operations, minus any net losses from operations, and minus any withdrawals of funds by the owner for personal use.

Capital Asset

Tangible and generally illiquid property used by a business to generate profit, such as equipment and buildings.  The usefulness of the asset is expected to extend beyond one year.

Capital Expenditure

Known as CAPEX, capital expenditures describe funds used by a business to upgrade or acquire new physical assets, such as tools and other equipment, for the purpose of attaining future benefits.  In the accounting context, capital expenditures are...

Capital Gains

Definition from Nolo’s Plain-English Law DictionaryProfit on the sale of a capital asset, such as stock or real estate. If a person sells a primary residence, current tax law lets the seller exclude $250,000 in profit from capital gains tax. A couple can...

Capital Investment

Money invested into a business with the expectation that the money will be recovered through future profits.  Generally, the money is used for capital expenditures as opposed to daily working capital.

Capitalization

1) In the accounting context, it is where a cost is recorded as a a price of the asset rather than as an expenditure.

2) In the corporate context, it is a firm's "invested capital," meaning the business' corporate stock plus long-term debt plus...

Capitalized Expenditure

Definition from Nolo’s Plain-English Law DictionaryAn expenditure for a capital asset that must be deducted from business income over more than one year, as opposed to an ordinary expense.

Definition provided by Nolo’s Plain-English Law Dictionary.

Capitalized Interest

Definition from Nolo’s Plain-English Law Dictionary1) Interest on a loan that is added to the principal balance. For example, interest may accrue on a student loan while the debtor is in school, which is then added to the principal on the loan. This...

Capitalized Value

Definition from Nolo’s Plain-English Law DictionaryThe current value of an asset, based on the total income expected to be realized over its economic life span. The anticipated earnings are discounted (given a lower value) so they take into account the...

Cashier's Check

Definition from Nolo’s Plain-English Law DictionaryA check issued by a bank on its own account, not on a depositor's account. The bank receives money from the purchaser in the amount of the cashier's check, then issues the check and guarantees its payment...

Certificate of Deposit (CD)

Definition from Nolo’s Plain-English Law DictionaryA document issued by a bank in return for a deposit of money. Interest rates on CDs are fixed, and usually higher than on savings accounts, because banking institutions require a commitment to leave the...

Certified Check

Definition from Nolo’s Plain-English Law DictionaryA check issued and guaranteed by a bank, certifying that the maker of the check has enough money in his or her account to cover the amount to be paid. The bank sets aside the funds so that the check will...

Chapter 11 Bankruptcy

Definition from Nolo’s Plain-English Law DictionaryA type of bankruptcy that allows businesses to reorganize their debt load in order to remain in business.

Definition provided by Nolo’s Plain-English Law Dictionary.

Chapter 13 Bankruptcy

Definition from Nolo’s Plain-English Law DictionaryA type of consumer bankruptcy designed to help debtors reorganize their debts and pay all or a portion of them over three to five years. In Chapter 13 bankruptcy, debtors keep their property and use their...

Chapter 13 plan

Definition from Nolo’s Plain-English Law DictionaryA document the debtor must file in a Chapter 13 bankruptcy, showing the debtor's proposal for repaying debts. Typically, a Chapter 13 plan requires the debtor to make set payments once or twice a month,...

Chapter 7 Bankruptcy

Definition from Nolo’s Plain-English Law DictionaryA consumer liquidation bankruptcy proceeding in which the trustee sells any nonexempt property the debtor owns and distributes the proceeds to the debtor's creditors. At the end of a Chapter 7 case, many...

Charity

Definition from Nolo’s Plain-English Law DictionarySee: charitable organization

Definition provided by Nolo’s Plain-English Law Dictionary.

Chart of Accounts

A list of all the ledger accounts used by a business and serves as an index to locate any particular account within the ledger.

Chattel Mortgage

An antiquated term for a mortgage on personal goods (as opposed to real estate) where the lender holds an interest in the property as security for the loan.  Today these arrangements are referred to as "security agreements".   

Chattel Paper

In secured transactions, a document used to sell property on credit while retaining some interest in the property.  Chattel paper must show: (1) a monetary obligation from Party A to Party B, and (2) a security interest or...

Check

Definition from Nolo’s Plain-English Law DictionaryA draft upon a particular account in a bank, in which the drawer or maker (the person who has the account and signs the check) directs the bank to pay a certain amount to the payee. (See also: negotiable...

Check-flashing

Definition

See kiting.

Check-kiting

Definition

See kiting.

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