Terms with Category Financial Banking

  • Direct Cheque Printers Definition,
    • These operations offer lower prices and greater selection than chequing customers get through their banks. Many of these printers are also printing cheques for banks that use outside printers. Customers must supply most direct cheque companies with a voided cheque or a reorder form from a current batch of cheques and a deposit slip. Names and addresses must match with information on file at the account holder's bank.
  • Direct Debit (DD) Acronym, Important,
    • A means of authorizing recurring payments (e.g., mortgage payments, insurance premiums) to be drawn on an account.
  • Direct Deposit (DD) Acronym, Important,
    • An automatic deposit of wages or benefits to a customer's bank account.
  • Direct Financing Definition,
    • When a buyer obtains financing through an outside financial institution rather than through the dealer.
  • Direct Fund Transfer Definition,
    • Similar to a direct deposit.
  • Direct Tax Definition,
    • A tax that is paid straight to the government.
  • Disclosure Definition,
    • A statement listing potential defects to a property, such as the possible existence of lead paint or radon.
    • A statement required by most provinces that requires the creditor to tell the debtor the annual percentage rate, finance charges and other terms of a loan.
  • Disinflation Definition,
    • A reduction in the inflation rate as a result of either government policy or a decline in economic activity.
  • Distress Definition,
    • The right of one party to sell real or personal property belonging to another party to pay unpaid or overdue debt.
  • Distressed Property Definition,
    • Property that is in poor condition, or whose owner is in poor financial condition.
  • Dividend Definition,
    • Distribution of earnings to shareholders. In credit unions, it's the money paid to members for deposits, similar to the interest banks pay to their customers for deposits.
  • Documentary Credit Definition,
    • Written undertaking by a bank on behalf of an importer authorizing an exporter to draw drafts on the bank up to a specified amount under specific terms and conditions. They are used to facilitate international trade. In the United States these instruments are called commercial letters of credit.
  • Down Payment Definition,
    • The portion of the purchase price a buyer pays, in cash, at the time the loan originates.
  • Draw Period Definition,
    • On a line of credit, the draw period is the fixed time when a borrower can make withdrawals from the account. After the draw period expires, the borrower can renew the credit line or may be required to pay the outstanding balance in full, or over time.
  • Due-on-sale Clause Definition,
    • A condition of a mortgage that states that the loan must be paid when the house is sold. Commonly used in reverse mortgage lending.
  • E-cheque Definition,
    • An electronic version of a paper cheque. The account holder writes an e-cheque using a computer or other type of electronic device and transmits the e-cheque to the payee electronically. Like paper cheques, e-cheques are signed by the payer and endorsed by the payee. Rather than handwritten or machine-stamped signatures, however, e-cheques are affixed with digital signatures, using a combination of smart cards and digital certificates. The payee deposits the e-cheque, receives credit, and the payee's bank clears the e-cheque to the paying bank. The paying bank validates the e-cheque and then charges the cheque writer's account.
  • Early Closing Cost Reimbursement Definition,
    • Some line-of-credit lenders waive underwriting costs when a line is opened in anticipation of future profits. If a line is then closed early, these institutions impose those fees retroactively.
  • Early Withdrawal Penalty Definition,
    • A depositor forfeits interest or is charged a service fee for either withdrawing funds or closing a time deposit before the maturity date.
  • Earned Income Definition,
    • Money earned through wages, salaries, tips, net earnings (if self-employed), and any other income received for work or personal services. Investment income, such as dividends and interest, is not counted as earned income.
  • Economic Growth Definition,
    • The rate of change in output from one year to the next.
  • Economic Indicators Definition,
    • Statistics that help determine how the economy is faring. They include the Consumer Price Index, housing starts, and unemployment rates, among others.
  • Effective Age Definition,
    • An appraiser's estimate of the physical condition of a building. The actual age of a building may be shorter or longer than its effective age.
  • EFT/POS Definition,
    • Electronic funds transfer (EFT) at the point of sale (POS).
  • Electronic Cash Definition,
    • Also known as e-cash. A system used to transfer cash over the Internet to pay for goods and service.
  • Electronic Commerce Definition,
    • The purchase or sale of products and services through an electronic system such as the Internet.
  • Electronic Data Interchange (EDI) Acronym,
    • EDI is a system that companies use to exchange business information electronically, virtually eliminating paperwork.
  • Electronic Filing (EF, NETFILE) Acronym, Very Important,
    • Taxpayers can now file their tax information with personal computers and tax preparation software. The information goes directly to Revenue Canada and they can directly deposit refunds into the taxpayer's bank account.
  • Electronic Funds Transfer (EFT) Acronym, Important,
    • The transfer of money between accounts by consumer electronic systems such as automated teller machines (ATMs), and electronic payment of bills.
    Also known as e-Transfer.
  • Employment Equity Act (EEA) Acronym, Canada,
    • A federal statute that requires employers with 100 or more employees to eliminate any practices in the workplace discriminating against four designated groups of people who have historically been disadvantaged in the labour market: women; people who, by reason of race or colour, are members of visible minority groups; aboriginal peoples; and persons with disabilities.
  • Employment Insurance (EI) Acronym, Canada,
    • A Service Canada program where premiums are paid by taxpayers and benefits are provided for the unemployed.
    Formerly known as Unemployment Insurance (UI).
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