Financial Terms Glossary...
Cash or assets easily converted into cash with little or no loss of value.
Transaction where the property or funds owner, identified as the Lender, allows another party, the Borrower, to use the property or funds. The borrower customarily promises to return the property or funds after a specified period with payment for its use, called interest. The promise documentation is called a Promissory Note.
Loan Policy Committee
Group of credit union members appointed by the Board of Directors to review loan decisions that have been appealed by the member.
Magnetic Ink Character Recognition (MICR)
Electronic recognition of machine-readable characters printed with magnetic ink. They are often printed at the bottom of checks
and are used to route the check to the proper financial institution and to charge the check to the appropriate account within the institution.
Electronically encoded magnetic field placed on the surface of a plastic card for the purpose of enabling a machine to identify unique information about the issuing institution and the account holder.
Date when the principal amount of a note, draft, acceptance, bond, installment loan or other debt instrument must be paid in full.
Person holding at least one credit union share, and depending upon his/her legal age status, has the right to vote at the annual meeting. The share is usually held in the member's savings account and may not be withdrawn unless the member leaves the credit union.
Money Market Accounts
Market-sensitive account that generally requires a minimum deposit amount and may restrict the maximum number of checks that can be written per month. Account has liquid funds that are available without penalty and the account pays an interest rate generally comparable to rates in money market mutual funds. The rate is based on general economic factors, as well as the relative investment, liquidity, security, size, and term.
Mortgage Loan And Chattel Mortgage
This is a debt instrument where the lender has a lien on a property as security for the repayment of a loan. The borrower has use of the property, and the lien is removed when the obligation is paid in full. A mortgage normally involves real estate. For personal property, such as machines, equipment, or tools, the lien is called a "chattel mortgage."