The total amount of money needed to meet a borrower's obligation on a loan. It is arrived at by accruing gross
interest for one day and multiplying this figure by the number of days that exist between the date of the last
repayment and the date on which the loan is to be completely paid off. This amount, known as accrued interest, is
combined with the latest principal and escrow balances that are applicable to what is now referred to as the loan
payoff amount. In the case where prepaid interest exceeds the accrued interest, the latter is subtracted from the
former and the difference is used to reduce the total amount owed.
A rate developed by comparing the ratio of total loans charged off to the total loans disbursed from inception of
the program to the present date.
LOSS RESERVE ADJUSTMENT
A reserve rate based upon the ratio of the aggregate net chargeoffs (chargeoffs less recoveries) for the
recent five years to the total average loans outstanding for the comparable 5-year period.
Markup is the difference between invoice cost and selling price. It may be expressed either as a percentage of the
selling price or the cost price and is supposed to cover all the costs of doing business plus a profit. Whether
markup is based on the selling price or the cost price, the base is always equal to 100
As applied to securities and commercial paper, the period end date when payment of principal is
Extensions of payment beyond the original period established for repayment of a loan.
A combination of two or more corporations wherein the dominant unit absorbs the passive ones, the former continuing
operation usually under the same name. In a consolidation two units combine and are succeeded by a new corporation,
usually with a new title.
An instrument giving legal title to secure the repayment of a loan made by the mortgagee (lender). In legal
contemplation there are two types: (1) title theory - operates as a transfer of the legal title of the property to
the mortgagee, and (2) lien theory - creates a lien upon the property in favor of the