A letter of credit is an instrument issued by a financial institution, usually a bank, which authorizes the bearer to demand payment from the institution. A letter of credit can be general, if it is not addressed to any specific person, or...
banking
lien
A lien is a security interest or legal right acquired in one's property by a creditor, or lienholder. A lien usually prevents sale of the property until the underlying obligation to the creditor is satisfied. If the underlying obligation is...
lien creditor
A lien creditor is a creditor with a security interest in the debtor’s property to support the creditor’s claim.
The Uniform Commercial Code §9-102(52) defines a lien creditor as:
A creditor that has acquired a lien...loan
A loan is a form of debt where one party agrees to lend money to another. While generally synonymous with debt, debt covers any amount owed to another, whereas a loan refers specifically to an agreement where one party lends to another....
loan consolidation
A loan consolidation combines a number of loans into a single new loan with a lower interest rate and a new payment plan. Loan consolidation has many benefits. A debtor doesn’t have to pay different creditors, but can make one single payment to one...
McCulloch v. Maryland (1819)
McCulloch v. Maryland (1819) is the U.S. Supreme Court case that defined the scope of the federal legislative power and the federal government’s relationship with state governmental authority.
The United States Congress...
money order
A money order is a method of payment that can be purchased from entities such as banks and post offices, as well as some stores or other businesses. The purchase price is the dollar amount of the money order, as well as an issuing fee that can vary...
mortgage
A mortgage involves the transfer of an interest in land as security for a loan or other obligation. It is the most common method of financing real estate transactions. The mortgagor is the party transferring the interest in land. The...
mortgage servicer
Mortgage servicers are the companies that manage a mortgage after the mortgage has been granted. The lending institution granting the mortgage may be the servicer, or lending institution may pay or sell the mortgage to another company to...
mortgage-backed security
A mortgage-backed security is an investment in which the purchaser buys a slice of a pool of mortgage loans. As explained by the Financial Industry Regulatory Authority (FINRA), “mortgage-backed securities, called MBS, are bonds secured by...