Banking definitions beginning with O

Banks' legal right to seize funds that a guarantor or debtor may have on deposit to cover a loan in default. It is also known as right of setoff.
The Office of the Comptroller of the Currency - Cite This Source - This Definition
Browse Related Terms: mortgage broker, mortgage correspondent lender, mortgage lender, mortgage loan originator, Right of offset

This term, when used in this context, and when referring to a country, means a jurisdiction that offers financial secrecy laws in an effort to attract investment from outside its borders. When referring to a financial institution, "offshore" refers to a financial institution that primarily offers its services to persons domiciled outside the jurisdiction of the country in which the financial institution is organized.
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Browse Related Terms: Custodian Services, Financial Secrecy, Personal Investment Corporation (PIC), Private Banking

Often an IBC's offshore address is nothing more than a mail drop (P.O. Box) assigned to the IBC. Bank and brokerage statements and any other type of company mail may be sent to this address. The mail will typically be picked up twice monthly by the offshore facilitator. The IBC's mail will be put into a plain, brown envelope and mailed to the address of the beneficial owner's choice. Only the domestic return address and the recipient's address appear on the envelope. Thus, the discrete envelope arrives with the offshore IBC's mail inside. Using offshore mail forwarding insures that the wrong eyes will never view sensitive offshore mail.
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Browse Related Terms: Bearer Shares, Beneficial Ownership, International Business Corporation (IBC), Letter of Wishes, Nominee, Nominee Director, Offshore Trustee

An offshore promoter is a person or entity who markets offshore arrangements to the public. The promoter can be a financial institution, lawyer, accountant, broker, financial planner, or other individual.
IRS - Cite This Source - This Definition
Browse Related Terms: Fictitious Invoices, Red Cross Scheme, Tax Haven

A trustee has a fiduciary duty to manage and conserve the assets of a trust over which he or she has control. The offshore trustee has an additional duty to maintain the financial privacy of the beneficial owner of the trust assets.
IRS - Cite This Source - This Definition
Browse Related Terms: Bearer Shares, Beneficial Ownership, International Business Corporation (IBC), Letter of Wishes, Nominee, Nominee Director, Offshore Mail Forwarding Address

A service that allows an account holder to obtain account information and manage certain banking transactions through a personal computer via the financial institution's web site on the Internet. (This is also known as Internet or electronic banking.)
The Office of the Comptroller of the Currency - Cite This Source - This Definition
Browse Related Terms: Account holder, Electronic banking, Escrow, Foreign transaction fees, Joint account, Point of sale (POS), Statement

A credit agreement (typically a credit card) that allows a customer to borrow against a preapproved credit line when purchasing goods and services. The borrower is only billed for the amount that is actually borrowed plus any interest due. (Also called a charge account or revolving credit.)
The Office of the Comptroller of the Currency - Cite This Source - This Definition
Browse Related Terms: Account Agreement, Available credit, Credit card account agreement, Credit limit, Home Equity Line of Credit (HELOC), Line of credit, Overlimit, Revolving credit

National banks conduct some of their banking activities through companies called operating subsidiaries. These subsidiaries are companies that are owned or controlled by a national bank and that, among other things, offer banking products and services such as loans, mortgages, and leases.

The Office of the Comptroller of the Currency supervises and regulates the activities of many of these operating subsidiaries.

The Office of the Comptroller of the Currency - Cite This Source - This Definition
Browse Related Terms: Bank, Bank examination, credit union, Enforcement Action, Financial regulatory agency, National Bank, National Bank Examiner, National Credit Union Administration (NCUA), State Banking Department

When the amount of money withdrawn from a bank account is greater than the amount actually available in the account, the excess is known as an overdraft, and the account is said to be overdrawn.
The Office of the Comptroller of the Currency - Cite This Source - This Definition
Browse Related Terms: Decedent, Escheat, Estate account, Frozen account, Garnishment

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