new terms

Bank Terminology





ABA Routing Number – a series of numbers located at the bottom of an account holder’s checks or deposit slips.

These numbers identify a particular address for a specific banking institution, ??a routing address, which the

Federal Reserve Banking system uses when funds transactions move within the banking system.

Amortization – the repayment of a loan or process of reducing debt by installments with regular payments to

cover principle and interest, ?usually in a term expressed in months.

Assignment – the transfer of a loan from one party to another.

ACH – stands for Automated Clearing House, which is an electronic transfer (secure & efficient) of funds

between financial institutions.

Balloon Payment – the final lump?sum payment that is made at the maturity date of a loan.

Bankruptcy – a proceeding in a federal court in which a debtor who owes more than his assets can cover is

granted relief from debt by transferring all assets to a court appointed trustee.

Basis Points – a basis point is 1/100th of a percentage point. For example, 50 basis points of a $10,000 loan

would be 0.50% X

 

[Dhruv Bindhani]

Bank Terminology





ABA Routing Number – a series of numbers located at the bottom of an account holder’s checks or deposit slips.

These numbers identify a particular address for a specific banking institution, ??a routing address, which the

Federal Reserve Banking system uses when funds transactions move within the banking system.

Amortization – the repayment of a loan or process of reducing debt by installments with regular payments to

cover principle and interest, ?usually in a term expressed in months.

Assignment – the transfer of a loan from one party to another.

ACH – stands for Automated Clearing House, which is an electronic transfer (secure & efficient) of funds

between financial institutions.

Balloon Payment – the final lump?sum payment that is made at the maturity date of a loan.

Bankruptcy – a proceeding in a federal court in which a debtor who owes more than his assets can cover is

granted relief from debt by transferring all assets to a court appointed trustee.

Basis Points – a basis point is 1/100th of a percentage point. For example, 50 basis points of a $10,000 loan

would be 0.50% X

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