Financial Terms Glossary...
Funds paid to member or consumer based on account size and rates declared regularly (monthly, quarterly or annually) by a board of directors for various types of accounts. A dividend represents the payment by the credit union or financial institution to the member or consumer for the use of the funds.
Early Withdrawal Penalty
Fee assessed against holders of fixed-term investments when they withdraw their money before the maturity date.
Electronic Funds Transfer (EFT)
Any transfer of funds, other than a transaction originated by check, draft or similar paper instrument, that is initiated through an electronic terminal, telephone, computer or magnetic tape for the purpose of ordering, instructing, or authorizing a financial institution to debit or credit an account. The term includes but is not limited to: point-of-sale transfers, ATM transfer, direct deposits and withdrawals of funds and transfers by telephone.
It also includes transfers resulting from debit card transactions, including those that do not involve an electronic terminal at the time of the transaction. The term does not include check, draft or similar paper paymenty instruments at an electronic terminal.
Equal Credit Opportunity Act (ECOA)
Federal law that prohibits discrimination against an applicant for credit on the basis of age, sex, marital status, race, color, religion, national origin and other factors.
Remaining value that exceeds any claim or lien on a property.
Money, securities or other property or instruments held by a third party until the conditions of a contract is met.
The period of time when the lender allows the borrower to postpone repayment because of financial difficulty.
Field of Membership (FOM)
The type of membership served by the credit union, including the group or groups of people in a company, organization, institution or geographic community that is identified in the credit union’s charter. The FOM defines who may legally become a member of the credit union.
The Federal National Mortgage Association nickname.
Federal Credit Union
A credit union chartered, examined and supervised by the federal government through the National Credit Union Administration (NCUA).
Federal Credit Union Act
Federal law enacted in June 1934 that allowed the organization of federal credit unions and established methods for their chartering, supervision, and examination.