QUICK LINKS

ATM / Branch Locator

NEED TO SPEAK WITH SOMEONE?

HOLIDAY SCHEDULE

 

Banking Terms

A-BC-E F-HI-KL-MN-OP-QR-ST-VW-Z

L

Land

Any part of the surface of the earth.

Land Contract

A property installment selling agreement whereby the purchaser may occupy and use the land, but no deed is given by the seller until a specified part of the sales price has been paid.

LAR

An acronym for “Legal Amount Recognition”; the process by which recognition engines read the written value on a check or other payment document automatically so that operators do not have to key in most of the data.

©2011 NACHA - The Electronic Payments Association® All rights reserved.

Last Will and Testament

A legally enforceable declaration of a person's wishes regarding matters to be a attended to after his death and not operative until his death; revocable or amendable by codicil up to the time of death, or loss of mental capacity to make a valid will.

The Glossary of Fiduciary Terms, second edition, published by the American Bankers Association

Late Charge

The penalty a borrower must pay when a payment is made after the stated due date.

Late Payment

A payment made later than agreed upon in a credit contract and on which additional charges may be imposed.

Lease

A written contract between a property owner and a tenant that expresses the conditions under which the tenant may possess the real estate for a specified period of time and rent.

Leasehold Estate

A way of holding title to a property wherein the mortgagor does not actually own the property, but instead has a long-term recorded lease on it.

Legal Description

A legal property description that is sufficient to locate and identify the property without verbal testimony.

Lender

The bank, mortgage broker, or financial institution providing the loan funds to a borrower.

Lessee

A person or company that signs a lease to get temporary use of property.

Lessor

A person or company that provides temporary use of property usually in return for periodic payment.

Letter of Credit

An instrument issued by a bank that guarantees that the bank will pay the seller, if all the terms of the contract are met, and protects the buyer by assuring that no payment will be make until the contract has been fulfilled.

Liabilities

A person's financial obligations including both long-term and short-term debt, as well as any other amounts that are owed to others.

Lien

A loan secured by real estate. An encumbrance against a property for money due. The lien can be voluntary such as a mortgage or involuntary such as a judgment.

Lifetime Interest Rate Cap

On an adjustable-rate mortgage (ARM), a limit on the amount that the interest rate can increase or decrease over the term of the loan.

Lifetime Payment Cap

On an adjustable-rate mortgage (ARM), a limit on the amount that payments can increase or decrease over the term of the loan.

Line of Credit

An agreement by a financial institution to extend credit up to a certain amount for a certain time to a specified borrower.

Liquid Asset

An asset that is easily converted into cash.

Living Trust

A trust that becomes operative during the lifetime of the settlor; opposed to a trust under will. The same as a trust inter vivos.

The Glossary of Fiduciary Terms, second edition, published by the American Bankers Association

Loan

Borrowed money that is usually repaid with interest.

Loan Commitment

A written offer from a lender to provide financing to a borrower. The commitment letter states the terms under which the lender agrees to provide financing to the borrower. Also called a commitment letter.

Loan Origination

The process by which a mortgage lender creates a mortgage secured by real property.

Loan Term

The number of months that you will make monthly payments. If the loan term is the same as the payment calculation term, you will pay the loan in full during the loan term and no balance will be due. If the payment calculation term is greater than the loan term, a balance or "balloon payment" may be due at the end of the loan term.

Loan to Value (LTV)

A ratio used by lenders to calculate the loan amount requested as a percentage of the value of a home. To determine the loan to value ratio, divide the loan amount by the home's value. The LTV ratio is used to determine what loan types the borrower qualifies for as well as the cost and fees associated with obtaining the loan.

Lock

Written agreement in which a lender guarantees a specific interest rate if a loan closes within a set period of time. The lock-in may also specify the number of discount points to be paid at closing.

Lock Period

The number of days that the lender will guarantee the interest rate offered for a loan. In order to hold the guaranteed interest rate for a loan, the loan closing must occur during the lock period.

Lock-in

Written agreement in which a lender guarantees a specific interest rate if a loan closes within a set period of time. The lock-in may also specify the number of discount points to be paid at closing.

M

Magnetic Ink Character Reconition (MICR)

Magnetic codes on the bottom of a check that allow a machine to read the check.

Margin

The number of percentage points a lender adds to the index value to calculate the ARM interest rate at each adjustment period.

Market Risk

The possibility that stock or bond prices over broad segments of the market will fluctuate.

WK: 401(k) Answer Book - Great West Retirement Services, Glossary - © 2011 Wolters Kluwer

Maturity

The date on which the principal balance of a financial instrument becomes due and payable.

Maximum Financing

Usually, a loan amount that is within 5 percent of the highest loan-to-value (LTV) percentage allowed for a specific product.

Merged Credit Report

A credit report that contains information from at least three credit repositories. Any duplicate entries are combined to provide a concise summary of a your credit.

Minimum Distribution Requirements

Rules governing when distributions from a qualified plan must commence and the maximum time period over which benefit payment scan be made. Generally, distributions must commence by April 1 of the year following the later of the calendar year in which the employee attains age 70 ½ or retires (the delay until retirement is only for non-5 percent owners) and generally must be paid over a period based in part on the life expectancy of the employee.

WK: 401(k) Answer Book - Great West Retirement Services, Glossary - © 2011 Wolters Kluwer

Mint

(verb) To make by stamping metal. The images you see on quarters, dimes, pennies, etc have been minted or stamped on there by the government. The government has a mint factory where all of the money of the United States is made.

©2010 Wordsmyth (definition only)

Money Laundering

Moving large amounts of illegally obtained cash through bank accounts to hide the source of the money.

Money Market Account

A type of savings account that provides bank depositors with many of the advantages of a money market fund. Certain regulatory restrictions may apply to the withdrawal of funds.

Money Market Deposit Account

A type of savings account created in 1982 that pays interest and allows account holders limited check-writing privileges.

Money Market Fund

A mutual fund that invests in highly liquid short-term securities, including bank certificates of deposit (CDs), commercial paper, and Treasury Bills (T-Bills).

WK: 401(k) Answer Book - Great West Retirement Services, Glossary - © 2011 Wolters Kluwer

Mortgage

The legal document used by a borrower to pledge their property as security in order to obtain a loan. In some areas of the country, the mortgage is called a "deed of trust".

Mortgage Insurance

Insurance provided by a private company to protect the mortgage lender against losses that might be incurred if a loan defaults. The borrower usually pays the cost of the insurance and is most often required if the loan amount is more than 80% of the home's value. Sometimes referred to as private mortgage insurance.

Mortgage Insurance Premium (MIP)

Amount paid by a borrower for mortgage insurance, either to a government agency such as the Federal Housing Administration (FHA) or to a private mortgage insurance (PMI) company.

Mortgage Loan

Real estate credit, usually extended on a long term basis with the mortgaged property as security.

Mortgagee

The person or company who provides the loan funds to the borrower.

Mutilated Currency

A term used by the United States Bureau of Engraving and Printing (BEP) to describe currency which is very badly damaged, to the point where it is difficult to determine the value of the currency, or where it is not clear that at least half of the note is present. Common causes of damage are fire, water, chemicals, explosives, animals or damage from extended burying of the currency. Banknotes which are merely very dirty, or very worn out, but where the value is clear, are not considered mutilated and can be traded in at any bank from where they will eventually be processed out of circulation. In general, mutilated currency of US dollars can be sent to the BEP for evaluation, and if it is determined that at least half of the currency is present, or there is clear enough evidence that whatever parts are missing are destroyed, the owner of the mutilated currency can have the money value of the mutilated currency refunded to them. Annually, this amounts to about 30,000 claims and over 30 million dollars in refunds.

Source: www.wikipedia.com

Mutilated Money

Currency and coin that is in such poor quality that is cannot be recirculated.

Mutual Fund

An investment company that combines the money of its numerous shareholders to invest in a variety of securities in an effort to achieve a specific objective over time.

WK: 401(k) Answer Book - Great West Retirement Services, Glossary - © 2011 Wolters Kluwer
 
 

About TBT

Who We Are Join Our Team People Who Make a Difference TBT Spirit of Giving Contact Us Customer Feedback Site-Map

Helpful Links

Send a Secure Email AnnualCreditReport.com ABA Consumer Connection FDIC.gov FDIC Consumer News Change of Address Form FAQs

Consumer Protection

Fraud Protection Center FDIC Update Privacy / Security Disclosures Protect Yourself Online Protect Your Business Online
Member of FDICAn Equal Housing Lender
 
Powered by Encore Multimedia.
ABOUT SSL CERTIFICATES