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– A
formal record of business transactions.
--
Interest earned but not yet credited or posted to an account.
--
Mortgage agreement between the credit union and a real estate
buyer stipulating predetermined
adjustments of the interest rate at specified intervals.
– Provision for repayment of a loan in periodic
payments over a stated period.
– Finance charge over
a full year, expressed as a percentage of all costs of the
loan
as required by the Truth-in-Lending Act.
-- Total amount of dividends
paid based on the dividend rate and compounding frequency
for 365 days.
-- Reflects the relationship
between actual dividends paid and credited during the period
to the average daily balance for the period. This does not
reflect any fees imposed on bonuses earned.
– Unmanned equipment used
by a member to obtain financial services, activated by a plastic
card, push buttons, and a personal identification number (PIN)
for each user.
-- Final payment on a debt that is substantially
larger than the preceding payments.
--
Organized body of volunteer persons who govern the affairs
of the credit union. The Board is
elected
by the membership at the Annual Meeting.
--
Rules adopted by the members and Board of Directors to define
the field of membership, set the par value of
shares, and give the general method by which the credit
union operates.
-- Limit on
how much the interest rate or the monthly payment can change,
either at each adjustment or during
the life of
the adjustable rate mortgage.
-- Money market instrument
that is a marketable receipt for funds deposited in a
financial institution for a specific period of time at
a specified
rate
of interest.
-- Procedure whereby a certain amount of a
member's balance is held intact until funds are released
or a certain
period of time elapses. (In some cases, dividends are
not earned on held funds.)
-- Process by which
a payment order moves from the initiator of the order to
the final recipient.
-- Asset pledged to a lender until a loan
is repaid and subject to forfeiture upon default.
-- Credit union that acts
as an agent and processes transactions for members
of another
credit
union pursuant to a service agreement.
-- Verifying debts and payment history
by a Credit Report and verifying income with employers.
-- Group of credit union volunteers
that has the responsibility to approve or disapprove
all requests
from
members for loans.
-- Continuing record of a borrower's
debt commitments and debt payments.
-- Insurance that will pay off
the loan balance in the event the member dies during
the course
of the
loan. There are two types: Single life (pays loan balance
for one member in the event of death); Joint life (pays
loan balance
if a member or his/her spouse dies).
Credit Limit -- Maximum amount of credit available
to a member on a specific account at any time.
– Member-owned, not-for-profit financial
cooperative formed for the purpose of encouraging savings
by offering a good return, using collective monies
to make loans
at competitively low interest rates to members, and
providing other financial services. Members are united by a
common
bond of association and democratically operate the
credit union
under state or federal regulation.
-- Signed
into law by President Clinton on August 7, 1998,
the Credit Union
Membership Access Act overturned a 1998 Supreme Court
decision against credit unions and consumers that
limited who could
join a credit union and preserves the ability of
consumers to choose their financial institutions.
-- National,
non-profit, dues-supported association serving
credit unions and credit
union leagues in the United States.
-- Money,
goods, or services that one party is obligated to pay to another
in accordance with an expressed agreement.
Debt may or may not be secured.
-- Combining several debts into one
loan, usually to reduce the annual percentage rate or
the dollar
amount of payments made each month.
-- Excess of liabilities and debts over income
and assets. Deficits usually are corrected by borrowing
or by
selling assets. In finance, an excess of expenditures
over budget.
-- Failure to make a payment on an obligation
when due.
-- Funds that are available to the
member at any time, and which require no advance
notice of
withdrawal.
-- Cash, checks, or drafts placed into
a member's account for credit and safekeeping.
-- Having a check, such as a payroll,
retirement, or disability check sent directly
to an individual's account
at their credit union through electronic means.
-- Release by companies
of all information, positive or negative,
that might
bear
on an investment
decision or on a loan account.
-- Distribution of earnings to members,
prorated by class of security and paid
in the form of money.
The amount is determined by the Board of
Directors and is
usually quarterly.
-- Charge assessed
against holders of fixed-term investments if they withdraw
their money
before maturity.
-- Any transfer of funds,
other than a transaction originated by check, draft,
or similar paper instrument, that is initiated through
an
electronic
terminal, telephone, or 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 or withdrawals of funds, and transfers
initiated by telephone. It includes all 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 payments made by check, draft, or
similar paper instrument 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.
-- Value of property that exceeds any claim
or lien on it.
-- Money, securities, or other property or
instruments held by a third party until the conditions
of a contract
are met.
-- Nickname for the Federal National Mortgage
Association
-- Credit Union chartered, examined
and supervised by the federal government through the
NCUA.
-- Federal law enacted in
June 1934 that allowed the organization of federal
credit
unions and
established methods for their chartering, supervision,
and examination.
-- Groups of people who
qualify as members of a credit union, limited by law
to those
who have a common bond.
-- Cost of credit, including interest,
paid by a member for a consumer loan. Under the Truth
in Lending
Act, the finance charge must be disclosed to the
member on closed-end loans, along with the term of
the loan,
or upon
request.
-- Type of loan in which the interest
rate does not fluctuate with general market conditions.
There
are fixed rate mortgages as well as fixed rate
business and consumer loans. Fixed rate loans tend
to have
higher original
interest rates than flexible rate loans because
lenders are not protected against a rise in the cost
of money
when they
make a fixed rate loan.
-- Process by which a homeowner who
has not made timely payments of principal and
interest on a mortgage
loses
title to the home. The holder of the mortgage
must follow legal procedures to seize the property,
which
may then
be sold to satisfy the claims of the mortgage.
-- Nickname for Federal Home Loan
Mortgage Corporation (FHLMC)
-- Nickname for the
Government National Mortgage Association and the
securities guaranteed
by that agency.
-- Segment of time in which no interest
is charged.
-- Statement of past
transactions having occurred on an account.
-- To delay the use of money for a short
period of time, until funds have cleared the account
they
are coming
from.
-- Form of electronic funds transfer
carried out from the member's home via computer
of home-phone
linkage with a financial institution.
-- A loan where you can borrow
against the equity of your home. Your home
equity can be
collateral for
loans such as car, college, bill consolidation,
and home repair loans.
-- By improving
the appearance or comfort factor of your
home, you
add to the value
of your home. This loan, which can be made
by a financial institution,
contractor or realtor, is easy to live
with.
-- Retirement fund established by an individual
in which one
deposits wages and defers taxes
until retirement.
-- Direct loans to individuals
that are repaid in fixed, periodic payments.
-- Cost of using money, expressed
as a rate per period of time, usually one
year, in which
case
it is called
an annual rate of interest. Money paid for
the
use of money. A member will pay interest
on a loan, or
may earn
interest
(dividends) on share accounts.
-- Use of capital to create more
money, either through income-producing
vehicles or through
more risk-oriented
ventures designed to result in capital
gains.
-- Account carrying the names of
two of more persons. Any account which lists
two or more
persons
who
share equally in the rights and liabilities
associated with the account. Either party may perform any
transaction on
the account. Only the primary member has loan
privileges under this one member number.
-- Depositing and drawing checks between
accounts at two or more financial institutions
and thereby
taking advantage of the float -- that is,
the time it takes
the institution of deposit to collect from
the paying institution.
This is an illegal activity.
-- Percentage of the payment
due that is charged for being late or paying
after
a predetermined
grace period.
-- Contract granting use of real
estate, equipment, or other fixed assets
for a specified
time in exchange
for payment, usually in the form of rent.
The owner of the leased
property is called the lessor, the user
the lessee.
-- Creditor's claim against property.
For example, a mortgage is a lien against
a house;
if the mortgage
is not
paid on time, the house can be seized
to satisfy the lien. Similarly, a bond
is
a lien against
a company's assets;
if interest and principal are not paid
when due, the
assets may be seized to pay the bondholders.
As soon as a debt
is
paid, the lien is removed. Liens may
be granted by courts to satisfy judgements.
-- Quantity of
credit granted to a member on an
open-end signature
loan. The
credit union
makes a certain
amount available to the customer
and he/she may draw funds
up to that amount as deemed necessary.
-- Cash or easily convertible
into cash with little or no loss
of value.
-- Transaction wherein an
owner of property, called the
Lender, allows
another
party,
the Borrower, to
use the property. The borrower
customarily promises to return
the
property after a specified period
with payment for its use, called
interest.
The documentation
of the
promise
is called
a Promissory Note.
-- Group
of members appointed by the
Board of
Directors
to review loans that
have been
appealed by the member.
-- Electronic recognition of machine-readable
characters (printed with magnetic ink)
appearing at the bottom of checks. 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 on which the principal amount of
a note, draft, acceptance, bond or other debt instrument
becomes
due and payable. Also termination or due date on which
an installment loan must be paid in full.
-- Person holding at least one credit union share
who is eligible to belong to the credit union and depending
upon age has a right to vote at the annual meeting.
-- Market-sensitive account that
generally requires a minimum of $1,000 and only three checks
drawn
on it per month. Account has liquid funds that are available
without penalty. Interest rate is generally comparable
to rates in money market mutual funds. Rates reflect general
economic factors as well as the relative investment liquidity,
security, size, and term.
-- Debt instrument by which the borrower (mortgagor)
gives the lender (mortgagee) a lien on 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
fully paid. A mortgage normally involves real estate. For
personal property, such as machines, equipment, or tools,
the lien is called a "chattel mortgage."
-- Used car, truck, RV and motorcycle
price guide found in the loan department that gives present-day
value
of vehicles.
-- Federal
Agency that regulates and examines credit unions.
-- Insurance program that protects the savings in
your credit
union up
to $100,000.. It is administered by an independent
agency of the federal government, the National Credit
Union
Administration (NCUA). The NCUSIF is the strongest
of the funds. Recently,
voluntary capitalization of the fund by all federal
credit unions resulted in an insurance fund that
equals 1.3%
of all federal credit union shares. This is the highest
ratio
of the federal funds.
-- Unconditional order or promise
to pay an amount of money, easily transferable from
one person
to another.
-- Bank of savings
and loan withdrawal ticket that is a negotiable
instrument. Accounts
from which such withdrawals can be made, called
NOW accounts, are thus interest-bearing checking accounts.
-- When there are not
enough funds in an account to cover the amount
a check has
been written
for.
-- Major expense of making a loan is
upfront for the lender so the lender pulls more money
out of the
transaction at the beginning to get immediate earnings
on loans. There are 2 kinds of loan origination fees.
One is
fixed dollar or percentage of the loan amount, sometimes
charged instead of application or appraisal fees, but
more often a separate charge. Another origination fee
is called
a loan discount fee, or points.
-- Written promise committing the maker
to pay the payee a specified sum of money, either
on demand or at a determinable future date, with or without
interest.
Instruments meeting these criteria are NEGOTIABLE.
Often called, simply, a NOTE.
-- Establishes rules underwhich Federal
Reserve Banks may extend credit to depository institutions
and
others
-- A
Federal Reserve System regulation for compliance
by all financial
institutions
regarding the limits on the number of days that
a check may be held for collection upon being
deposited. Also
defines the requirements of disclosures that
must be made in support
of account holder awareness of the hold policies
of individual financial institutions and establishes
endorsement
criteria
that must be met by each financial institution
handling
a
check.
-- Federal Reserve Board
regulation defining types
of deposits handled by institutions and explains
how reserves are to be computed.
-- Federal regulation designed
to inform consumers of the terms and conditions
on which
dividends
or interest are paid and fees are assessed.
(Credit unions must comply by January 1,
1995).
-- Federal Reserve Board regulation
detailing disclosures and rights
of electronic finds transfers.
-- Federal Reserve Board regulation
covering the extension of credit to customers
by securities
brokers, dealers, and members of the national
securities exchanges.
It establishes initial margin requirements
and defines registered (eligible), unregistered
(ineligible),
and exempt securities.
-- Federal Reserve Board limit
on the amount of credit a financial institution
may extend
a customer
for purchasing and carrying margin securities.
-- Federal Reserve Board regulation
covering provisions
of the Consumer
Credit Protection Act of 1968. Requires
creditors
to provide full
disclosure of the terms of a loan.
The interest rate must be stated as an annual
percentage
rate (APR).
Enables the
consumer to make informed decisions
regarding the cost of credit.
-- Act of reclaiming durable
goods purchased on credit, for which
payment is past
due.
-- Bond issued by the U.S. government
to help pay its expenses and also encourage savings.
Bonds
can be
cashed with interest after a six-month period.
– An employee group that
is eligible to form a credit union but has not because of
the group’s size or the potential members’ locations,
and receives full membership rights from an established
credit union.
-- Given amount of money a person deposits
with a credit union to become a member that confers
ownership
rights, has
a stated par value, and pays dividends. A share
account is what a credit union refers to as a
savings account.
-- Account
that will earn dividends at a particular rate
if held
to maturity,
and on
which a penalty shall be assessed for the withdrawal
of all or any portion of the principal amount
prior to maturity.
-- Printed document allowing payment
for goods and services. Considered a check only
if drawn
directly
on a financial institution. If "payable through" is
involved, it's a draft.
-- Interest calculation based
only on the original principal amount. Simple
interest
contrasts with
compound interest, which is applied to principal
plus accumulated interest.
-- Credit union chartered,
examined and supervised by the state of Connecticut.
-- Summary for members of the transactions
that occurred over the preceding month.
A credit union statement
lists all deposits and withdrawals, as
well as the running account balance.
-- Member's instructions to
the credit union directing it to dishonor
a specific
check.
-- Credit union
committee established to protect the
financial welfare
of the members by
examining the affairs of the credit
union, performing an annual
audit, and reporting to regulatory
agencies as required.
-- Check negotiated through a financial
institution, except one payable to the writer of the check.
-- Deposit that may not be withdrawn
unless stated time or notice requirements are
met (e.g., CDs IRAs).
-- Check of public records to
determine current ownership of a parcel of real
estate.
-- Moving funds between two accounts
held by the same or different members.
-- Section of the Consumer
Credit Protection Act that provides for a complete
and conspicuous
disclosure
of credit charges on dollars and cents and as an
annual percentage rate. (Regulation Z)
-- Federal regulation to assist consumers
in comparing deposit accounts
offered
by depository institutions.
Institutions are required to calculate dividends
on daily balance method or average daily
balance method.
Disclosure
information must accompany all deposit accounts.(Regulation
DD)
-- Check presented by a member
to the credit union, but the check is drawn
off the
member's
account
with another financial institution.
-- Charging a higher rate of interest than the law
allows.
-- Savings certificate
on which the rate of interest payable varies. The interest
rate
changes periodically
and is set by the financial institution, along with
other money market rates. -- Either open-end or closed-end
loans having interest rates that vary with a credit
union's
cost of funds or a money market index.
-- Mortgage with an interest
rate that fluctuates during the life of the mortgage.
Mortgage
agreement that stipulates predetermined adjustments
of the interest rate at specified intervals.
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