banking

adjustment date

Adjustment date is the date on which a financial term of a contract or transaction is set to change. In real estate, it usually refers to the date on which the interest rate of an adjustable rate mortgage (ARM) changes. An ARM’s interest rate...

adjustment period

Adjustment period is the time within which the interest rate on an adjustable-rate mortgage (ARM) can reset. It is the scheduled amount of time between each adjustment date.

Adjustment periods are set at month-to-month, semi...

administrative expenses

Administrative expenses are defined under §507(a)(1) of the U.S. Bankruptcy Code which states that claims that are given first priority distribution are those claims allowed as administrative expenses under §503(b). Administrative expenses...

advance

An advance is a type of loan or payment in which money or goods are given before consideration is received in return; usually with the expectation of repayment or adjustment in basis by the party receiving the advance.

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after-acquired property

Also called “future-acquired property”.

Personal or real property that a borrower acquires after having taken on a debt secured by all of their property, which becomes additional collateral for the debt. Based on UCC § 9-204, such...

agricultural lien

As established in UCC §9 102-5, an agricultural lien is a lien placed on farm products like farm equipment or livestock that secures payment or performance in exchange for a loan of land, goods, or money. These loans allow farmers to produce...

amortization

Amortization has different meanings for loan payments and taxes. Amortization for loans refers to separating the payments for the loan principal and interest into periodic payments to where the loan is paid off at a specified time....

appraisal

An appraisal is the process by which the value of an item or property is determined. This is necessary in a variety of contexts. One common instance is in the purchase, sale or refinancing of homes or other real estate. Appraisals are also...

appraise

To appraise is to determine the value of an object or piece of property. This is done by an expert called an appraiser, the result of this action called an appraisal. This is necessary in a variety of contexts, such as the purchase, sale or...

appreciate

Appreciate means to increase in value (the opposite of depreciate). It may also mean: to understand or recognize the value or significance of something or someone.