| Term |
Definition |
| Sales Concession |
Incentive to purchase a
property, such as vacations, furniture, automobiles, and securities,
and/or excess finance concessions. Also, other giveaways granted by
any interested party, including financing inducements that may be
over limitations set forth in the definition of financing
concessions (to-be sales). |
| Secured Debt |
Money borrowed that is
guaranteed (or secured) by the borrower's funds and held by the
lender in an interest-bearing account. Typically required when a
borrower is without credit or has poor credit. The lender usually
returns the secured money plus a nominal rate of earned interest to
the borrower with a certain period of time if a good credit history
is established. Distinguished from unsecured debt. |
| Security |
Property pledged to the
creditor in case of a default on a loan; also referred to as
collateral. |
| Security Interest |
The creditor's right to
take property or a portion of property offered as security. |
| Service Charge |
A component of some finance
charges, such as the fee for triggering an overdraft checking
account into use. |
| Servicing |
All the steps and
operations a lender perform to keep a loan in good standing, such as
collection of payments, payment of taxes, insurance, property
inspections and the like. |
| Simple Interest |
Interest that is paid on
the principal amount borrowed. Considered the best interest term for
a borrower because it is not compounded.
|
