financial services

Drawee

The party that has been ordered by the drawer to pay a certain sum of money to the person presenting the check (the payee).  Usually, the drawee is the Bank.

Drawer

The person who makes a Draft, directing the drawee (i.e., the Bank) to pay the specified sum to a third party (the payee).

Due

Definition from Nolo’s Plain-English Law Dictionary1) Owed as of a specific date.2) Immediately enforceable -- for example, payment is due at time of service.3) Proper, just, or reasonable -- for example, due care.

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Due and Owing

Definition from Nolo’s Plain-English Law DictionarySee: due

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

Due, Owing, and Unpaid

Definition from Nolo’s Plain-English Law DictionarySee: due

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

Due-on-sale Clause

Definition from Nolo’s Plain-English Law DictionaryA provision in a mortgage or deed of trust that allows the lender to demand immediate payment of the balance of the mortgage upon sale or transfer of ownership of the property used to secure the mortgage...

Dump-buyback

Definition from Nolo’s Plain-English Law DictionaryA plan by which the owners of a failing business form a new legal entity which then purchases some or all of the assets of the first business for their liquidation value. This can be done informally with...

Economic Espionage

In general terms, economic espionage is the unlawful or clandestine targeting or acquisition of sensitive financial, trade or economic policy information; proprietary economic information; or technological information.

The Economic Espionage Act...

Electronic Funds Transfer Act

Definition from Nolo’s Plain-English Law DictionaryA federal law that gives consumers the right to correct errors in ATM or bank statements relating to electronic funds transfers (such as ATM use, point-of-sale purchases, and preauthorized withdrawals...

Electronic Signature

Definition from Nolo’s Plain-English Law DictionaryA paperless method of entering into an electronic contract. Under the Electronic Signatures Act, enacted in 2000, electronic contracts (with a few exceptions) are as enforceable as those executed on paper...

Encumber

Definition from Nolo’s Plain-English Law DictionaryTo place a lien, mortgage, or other encumbrance on real estate.

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

Encumbrance

Definition from Nolo’s Plain-English Law DictionaryAny claim or lien on real estate. Examples include mortgages, deeds of trust, tax liens, mechanic's liens, easements, and water or timber rights. Documents showing encumbrances are usually recorded in the...

Entry

A record of a financial transaction in the appropriate accounting ledger.

Equitable Lien

A category of liens that are typically imposed by a court for reasons of fairness.  An equitable lien may arise regardless of whether or not the creditor has physical possession of the property involved. 

Equitable Subordination

In the law of corporations, describes decision by a court to subordinate a controlling shareholder’s claims upon debt owed her by her own firm, to those of other  “outside” (i.e., bona fide third party) creditors in bankruptcy. Equitable...

Equity of Redemption

Definition from Nolo’s Plain-English Law DictionaryIn foreclosure, the homeowner's right, for a certain period of time, to redeem the mortgage and keep the house by refinancing and paying off the original mortgage. State statutes usually spell out the...

Escrow

Definition from Nolo’s Plain-English Law DictionaryThe holding of funds or documents by a neutral third party prior to closing a sale. For example, buyers and sellers of real estate commonly hire an escrow agent to facilitate the transfer. Business sales...

Escrow Agent

Definition from Nolo’s Plain-English Law DictionaryA person (often an attorney) or a company that handles escrow arrangements. Also sometimes called a title agent.

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

Escrow Instructions

Definition from Nolo’s Plain-English Law DictionaryWritten instructions, signed by a buyer and seller, telling an escrow agent what needs to happen before the deal (usually a real estate sale) closes.

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Expense

A cost incurred by a company through its operations to earn revenue.

Extension

Definition from Nolo’s Plain-English Law DictionaryThe granting of a specific amount of extra time to make a payment, file a legal document after the date due, or continue a lease after the original expiration of the term.

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Face Amount

The value on the face of an instrument.

Examples:

On a check: the amount the bearer may withdraw.

On a loan or mortgage: the amount of money the borrower receives (does not include interest to be repaid).

On a life insurance...

Face Value

Definition from Nolo’s Plain-English Law DictionarySee: face amount

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

Fair Credit Billing Act (FCBA)

Definition from Nolo’s Plain-English Law DictionaryAn amendment to the Truth in Lending Act that gives consumers the right to challenge errors on their credit card statements. Once notified of an error, the company must either correct it or explain why it...

Fair Credit Reporting Act (FCRA)

Legislation that regulates both consumer reporting agencies and consumer reports. It applies to information reported on individuals concerning their personal lives such as: information collected, used, or expected to be used to evaluate eligibility for...

Fair Debt Collection Practices Act

Background

A creditor may seek to collect an outstanding debt in several ways. However, because of “abundant evidence of the use of abusive, deceptive, and unfair debt collection practices by many debt collectors,” 15 U.S.C. § 1692, in 1978,...

Fair Debt Collection Practices Act (FDCPA)

Definition from Nolo’s Plain-English Law DictionaryA federal law that prohibits certain debt collection practices, including harassing, abusing, or lying to debtors, contacting third parties about a debt (except in limited circumstances), and contacting...

FCBA

Definition from Nolo’s Plain-English Law DictionarySee: Fair Credit Billing Act

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

FCRA

Definition from Nolo’s Plain-English Law DictionarySee: Fair Credit Reporting Act

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

FDCPA

Definition from Nolo’s Plain-English Law DictionarySee: Fair Debt Collection Practices Act

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

FDIC

See:  Federal Deposit Insurance Corporation

Federal Deposit Insurance Corporation (FDIC)

 

The Federal Deposit Insurance Corporation (FDIC) is an independent agency created by the Congress to maintain stability and public confidence in the nation's financial system by:

insuring deposits,examining and supervising financial...

Fee

Definition from Nolo’s Plain-English Law Dictionary1) Absolute title in land. It often appears in deeds which transfer title as "Mary Jo Stone grants to Howard Takitall in fee . . ." The word "fee" can be modified to show that the title was "conditional"...

FICO

Definition from Nolo’s Plain-English Law DictionaryAbbreviation for Fair Isaac Corporation, the biggest credit scoring company. (See also: credit score)

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

FIFO

First In, First Out.  A phrase describing any technique in which the oldest item is counted or processed first, with each newer item being processed in chronological order after that.

See FIFO accounting.

FIFO Accounting

First in, first out accounting.  A method for assessing the value of inventory, in which the earliest purchased items are assumed to be the first ones sold.  FIFO accounting typically increases the recorded value of inventory; this may lead...

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