Terms with Category Financial Banking

  • Probate Bank,
    • The process of deciding the validity of a deceased person's will and appointing an executor.
  • Probate Sale Bank,
    • Sale of property after the death of the owner, supervised by a court, with proceeds divided among creditors and heirs.
  • Professional Liability Insurance (PLI) Bank, Very Important,
    • Insurance that covers professionals for liabilities occurring due to negligence or harm in a product or service they provide.
  • Profit Bank,
    • When revenues exceed expenses.
  • Promissory Note (PN) Bank,
    • A written promise to repay a loan by a specified time.
  • Property Value Bank,
    • The worth of a piece of real estate, based on the price a buyer and seller would negotiate.
  • Proprietor Bank,
    • The owner of a business or property.
  • Protected Cell Company (SPC) Bank,
    • A company that separates its assets and liabilities into a number of 'cells' to shield itself and each 'cell' from losses.
  • Province of Domicile Bank,
    • The province where an individual lives or intends to live permanently or for a long term, regardless of the individual's current location.
  • Provincial Sales Tax (PST) Bank, Canada,
    • A sales tax collected by some Canadian provinces.
  • Provision for Credit Losses (PCL) Bank, Canada,
    • A margin set by companies to compensate for losses due to unpaid credit.
    • The amount deducted from income equal to the amount by which a bank adjusts its loan balances to reflect anticipated losses on them.
  • Publicly Traded Company Bank,
    • A company that is sold on a stock exchange.
  • Purchase Agreement Bank,
    • A written promise to pay a specific amount for a property at a specified time. The purchase agreement is a written statement of the offer, which both the borrower and the seller will sign if the offer is accepted.
  • Purchase Option Bank,
    • An agreement where a portion of monthly rent can be credited toward the purchase of a property.
    • The portion of a vehicle lease that determines how much a lessee pays the lessor at the end of the lease to buy the vehicle. The price is usually the residual value.
  • Qualifying Rate Bank,
    • The mortgage rate that one must qualify for when applying for a variable rate or a term less than 5 years, so that if rates increase, the borrower can continue to make payments.
  • Qualifying Ratios Bank,
    • As calculated by lenders, the percentage of income that is spent on housing debt and combined household debt. The first qualifying ratio, called the gross debt service or GDS is up to and including a maximum of 32% of the combined gross family income. The second qualifying ratio is the Total debt service or TDS is up to and including 40% of gross income.
  • Quantum Meruit Bank,
    • Used in contract law it means "reasonable value of services."
  • Quick Assets (QA) Bank,
    • Assets that can be liquefied quickly without a loss.
  • Quick Liquidity Ratio Bank,
    • A metric used to find if a company has enough liquidity to make it's short term financial obligations.
  • Rate Bank,
    • Percentage a borrower pays for the use of money, usually expressed as an annual percentage.
  • Rate Cap Bank,
    • A limit on how much the interest rate can change, either at each adjustment period or over the life of the loan.
  • Rate Hold Bank,
    • The length of time, typically between 60 and 120 days, that a lender will guarantee a loan's interest rate once you are locked in.
  • Rate Index Bank,
    • A table of yields or interest rates being paid on debt (such as Treasury notes or bank deposits) that is used to determine interest-rate changes for adjustable-rate mortgages and other variable-rate loans.
  • Rate Lock-in Bank,
    • A written agreement in which the lender guarantees the borrower a specified interest rate, provided the loan closes within a set period of time.
  • Rate of Return (ROR, RR) Bank, Important,
    • The profit an investment generates, expressed as equity divided by cash flow.
  • Ratio Bank,
    • Comparison of two figures used to evaluate business performance, such as debt/equity ratio and return on investment.
  • Real Estate (RE) Bank, Very Important,
    • A section of land including all the natural resources (above and below the surface) and any permanent buildings or structures located on it. Also known as "realty."
  • Rebate Bank,
    • A manufacturer's reduction on the price of a car as an incentive to buyers. Rebates appeal to people with no credit or less-than-perfect credit who cannot qualify for the lowest-rate loan. A rebate may also appeal to first-time buyers who don't have a lot of cash for a down payment or another car to trade in.
  • Rebate Card Bank,
    • This is a credit card that allows the customer to accumulate cash, merchandise or services based on card usage.
  • Receivership Bank,
    • A form of bankruptcy where a person is appointed to take control of a company and is responsible for recouping unpaid debts.
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