AER: Annual earnings rate on an investment
Adjustable-Rate Mortgages (ARMS): Also known as variable-rate mortgages. The
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.
Account Agreement: The contract governing your open-end
credit account, it provides information on changes that may occur to the
account.
Arbitrage: Buying a financial instrument in one market in order to sell
the same instrument at a higher price in another market
Account History: The payment history of an account over a
specific period of time, including the number of times the account was past due
or over limit
Account Holder: 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.
Affidavit: A sworn statement in writing before a proper official, such
as a notary public.
Accrued interest: Interest due from issue date
or from the last coupon payment date to the settlement date. Accrued interest
on bonds must be added to their purchase price.
Adverse Action: 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.
Adverse Action Notice: 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.
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