Bank Legal Terms

A replacement exam is legally the same as the original exam if it accurately reflects the information from the original exam and includes the following statement: «This is a legal copy of your check. You can use it in the same way that you would use the original verification. «The replacement cheque must also have been processed by a bank. Cash equivalents. Highly liquid accounts with funds immediately accessible without penalty or risk of loss. Savings, chequing and money market accounts insured by the Federal Deposit Insurance Corporation (FDIC) with banks and the National Credit Union Administration (NCUA) with credit unions are generally considered safe and liquid accounts to hold your money. Solvency. When banks have enough money to cover possible losses. Banks are expected to have sufficient levels of capital to remain solvent and avoid defaults. The FDIC and other federal regulators work with banks to maintain solvency standards. The ratio between the borrowed capital (amount borrowed) and the estimated value (sale price). For example, for a $100,000 home with $80,000 in mortgage principal, the loan-to-value ratio is 80%.

The LTV affects the programs available to the borrower; In general, the lower the LTV, the more favorable the terms of the program offered by lenders. Federal Deposit Insurance Corporation (FDIC). The FDIC is a federal agency that helps ensure the stability of the U.S. financial system and protect bank customers. When you deposit your money into an FDIC-insured bank account, your money is protected up to a maximum of $250,000 per depositor for each category of account ownership in the event of a bank failure. Obligation to act as executor, administrator, guardian, custodian or trustee for a family trust, licensed trust or testamentary trust, or receiver or receiver in the event of bankruptcy. More information about trusts can be found here. Affinity CardA card offered jointly by two organizations. One is a credit card issuer and the other is a professional association, advocacy group or other non-bank company.

For example, Citibank and American Airlines sponsor the Citibank AAdvantage card. (C) Credit Card Accounts. In connection with a Customer`s opening of a credit card account, a Bank may obtain the customer`s credentials required by paragraph (a)(2)(i)(A) by purchasing them from a third-party source before granting credit to the Customer. Account reconciliation servicesA cash management service. One or more of a range of banking services designed to help a depositing customer reconcile their bank account balance. A basic account reconciliation service can simply be a list of checks paid in the order of the serial number. More advanced account reconciliation services combine the electronic data provided by the customer with the bank`s records to fully reconcile the account and list all outstanding items. There are many variants.

Also called Account Recs, ARP or Recons. Data obtained from a creditor demonstrating that a loan applicant has not paid its accounts with other creditors in accordance with the required conditions. For more information, see Credit Reports. Restitution of real or personal property to the State if (1) a person dies without leaving a will and has no heirs, or (2) if the property (e.g. a bank account) has been inactive for a certain period of time. For more information, see the related questions about inactive accounts. Automatic deferral Preliminary injunction that takes effect automatically with the filing of insolvency proceedings. The stay prevents creditors from bringing an action against the debtor or its assets. In bankruptcy proceedings referred to in Chapters 12 or 13, automatic suspension shall also apply to co-debtors and guarantors. 1) The amount of uncollected funds represented by cheques belonging to one bank but used by other banks. (2) The time elapsed between the day a cheque is deposited and the day it is presented for payment to the financial institution on which it is drawn.

Asset sensitiveDescribes a company`s position when an increase in interest rates helps the company and a reduction in interest rates harms the company. An entity is sensitive to assets when the impact of the change in its assets is greater than the impact of the change in its debt after a change in the applicable interest rates. This occurs when the timing or amount of the interest rate on liabilities causes the interest expense to change more than the change in interest income. The impact of a change in applicable interest rates can be measured in relation to the change in the value of assets and liabilities. In this case, the economic value of an asset-sensitive company`s equity increases when prevailing interest rates rise or decreases when prevailing interest rates fall. Alternatively, the impact of a change in applicable interest rates can be measured in relation to the change in interest income and expenses on assets and liabilities. In this case, the profit or net income of a wealth-sensitive business increases when prevailing interest rates rise and decreases when prevailing interest rates fall. Examine. A type of financial instrument that instructs the cheque author`s bank to make a payment to the recipient indicated on the cheque. Some people write paper checks and others use their bank`s online bill payment feature to write electronically generated checks.

A written document authorizing a person to act as an agent or counsel for another person. The power of attorney may refer to a specific act or be of a general nature. The terms of the written power of attorney may specify when it expires. If this is not the case, the power of attorney usually expires upon the death of the person granting it. 3. Approved by the Board of Directors or, where the Bank does not have a Board of Directors, by an equivalent management body within the Bank. Upon request, the Bank will provide the Financial Crimes Enforcement Network or its agent with a copy of its anti-money laundering program. Audit of a bank`s assets, revenues and expenses, as well as its operations, by representatives of the Federal and State Banking Supervisory Authority to ensure that the bank is solvent and operates in accordance with banking laws and sound banking principles.

Cheque issued by a depositor that has not yet been presented for payment or paid by the depositor`s bank. (a) the requirements of the anti-money laundering programme for banking regulation by an operational federal supervisory authority, including banks, savings banks and credit unions. A bank regulated by a functional federal regulator should meet the requirements of 31 U.S.C. 5318 h) (1) if it implements and maintains an anti-money laundering program that: Authenticated Security AgreementAn electronic security agreement between the debtor and the bank accepted by the borrower either by uploading the agreement to a personal database, or by printing a copy. Instead of a security agreement physically signed by the debtor, the amendments to the UCC from 2000 onwards provide for a certified security agreement. A negotiable instrument issued by a bank in exchange for funds, usually with interest, deposited with the bank. See related questions on certificates of deposit. As a banking customer and in everyday financial transactions, you can get in touch with basic banking terms and a lot of financial jargon. Do you know the difference between APR and APY? What about a CD (Certificate of Deposit) and a money market account? A court process by which the affairs of a bankrupt person are assigned to a trustee or receiver for administration under bankruptcy laws.