Banking definitions beginning with R

Real Estate Settlement Procedures Act (RESPA) - permalink - collapse

All > Business > Banking

Federal law that, among other things, requires lenders to provide "good faith" estimates of settlement costs and make other disclosures regarding the mortgage loan. RESPA also limits the amount of funds held in escrow for real estate taxes and insurance.
The Office of the Comptroller of the Currency - Cite This Source - This Definition
Browse Related Terms: Appraisal, Certificate of release, First mortgage, Insurance (hazard), Lien, Release of lien

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Reconciliation - permalink - collapse

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The process of analyzing two related records and, if differences exist between them, finding the cause and bringing the two records into agreement. Example: Comparing an up-to-date check book with a monthly statement from the financial institution holding the account.
The Office of the Comptroller of the Currency - Cite This Source - This Definition
Browse Related Terms: Availability date, Canceled check, Check 21 Act, Check truncation, Electronic check conversion, Encoding, Local check, Stale-dated check, Substitute check

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Red Cross Scheme - permalink - collapse

All > Business > Banking > Offshore Banking

This is a scheme that uses a charitable entity to disguise a transfer of funds offshore. For example, $1,000,000 is donated to a charitable organization. The charitable organization then remits a portion of the "donation" to an account offshore and retains a portion of the initial donation. The orchestrator takes a $1,000,000 donation and also has the benefit of transferring a portion of the "donation" to the orchestrator's offshore account.
IRS - Cite This Source - This Definition
Browse Related Terms: Fictitious Invoices, Offshore Promoter, Tax Haven

Redlining - permalink - collapse

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The alleged practice of certain lending institutions of not making mortgage, home improvement, and small business loans in certain neighborhoods-usually areas that are deteriorating or considered by the lender to be poor investments.
The Office of the Comptroller of the Currency - Cite This Source - This Definition
Browse Related Terms: Guaranteed student loan, Home Equity Loan, Loan contract, Loan fee, Loan modification provision, Loan proceeds, Loan-to-value ratio (LTV), Payday Loans, Private Mortgage Insurance (PMI), Renewal, Right of rescission, Student loan

Refinancing - permalink - collapse

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A way of obtaining a better interest rate, lower monthly payments, or borrow cash on the equity in a property that has built up on a loan. A second loan is taken out to pay off the first, higher-rate loan.
The Office of the Comptroller of the Currency - Cite This Source - This Definition
Browse Related Terms: Adjustable-rate mortgages (ARMS), Annual percentage rate (APR), Annual percentage yield (APY), Conventional fixed-rate mortgage, Debt-to-income ratio (DTI), Fixed-rate loan, Fixed-rate mortgage, Interest rate index, Periodic rate, Terms, Usury, Usury rates, Variable rate

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All > Business > Real Estate

Refund - permalink - collapse

All > Business > Banking

An amount paid back because of an overpayment or because of the return of an item previously sold.
The Office of the Comptroller of the Currency - Cite This Source - This Definition
Browse Related Terms: Account History, Delinquency, Escrow analysis, Escrow funds, Past-due item, Prepayment clause, Prepayment penalty

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registration by coordination - permalink - collapse

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A state procedure for registering securities for which a registration statement has been filed with the Securities and Exchange Commission (the "SEC") under the Securities Act of 1933. (Connecticut Uniform Securities Act, Section 36b-17(a)).
Connecticut Deptartment of Banking - Cite This Source - This Definition
Browse Related Terms: agent, agent of issuer, broker-dealer, investment adviser, investment adviser agent, registration by qualification, regulation a, regulation d, small corporate offering registration (scor) (see registration by qualification)

registration by qualification - permalink - collapse

All > Business > Banking

A state procedure for registering securities for which a registration statement has not been filed with the SEC. Any issuer can register its securities by qualification. Registration by qualification is commonly used by small businesses doing an exclusively intrastate offering and those relying on the federal Regulation A exemption. In addition, the Small Corporate Offering Registration (SCOR) is a type of registration by qualification. An issuer that registers its securities by qualification under Connecticut law may use general solicitation or advertising to raise capital.
Connecticut Deptartment of Banking - Cite This Source - This Definition
Browse Related Terms: agent, agent of issuer, broker-dealer, investment adviser, investment adviser agent, registration by coordination, regulation a, regulation d, small corporate offering registration (scor) (see registration by qualification)

regulation a - permalink - collapse

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Regulation A is an exemption from federal securities registration. Regulation A permits an issuer to raise a limited dollar amount in an offering of securities. Although technically an exemption from registration under the '33 Act, Regulation A requires that an issuer prepare an offering statement which is filed with and reviewed by the SEC. The offering statement must be furnished to any potential investor. If an issuer is subject to certain disqualification provisions of Rule 252 under the '33 Act, it may not rely on the Regulation A exemption.
Connecticut Deptartment of Banking - Cite This Source - This Definition
Browse Related Terms: agent, agent of issuer, broker-dealer, investment adviser, investment adviser agent, registration by coordination, registration by qualification, regulation d, small corporate offering registration (scor) (see registration by qualification)

regulation d - permalink - collapse

All > Business > Banking

Regulation D is an exemption from federal securities registration for private placements of securities. Private placements do not involve sales to the general public, and public solicitation and advertising are prohibited. Securities acquired in a private offering cannot be freely transferred. Regulation D limits the number of purchasers, the dollar amount that a company may raise and the nature of the purchasers (i.e. purchasers generally must be "accredited" and have a high net worth). Regulation D actually consists of 3 exemptions: 1) Rule 504 (issuers can raise up to $1 million); 2) Rule 505 (issuers can raise up to $5 million) and Rule 506 (no maximum cap on the amount that can be raised). Issuers relying on Regulation D for federal purposes must still make a filing with Connecticut if they wish to sell securities in or from the state.
Connecticut Deptartment of Banking - Cite This Source - This Definition
Browse Related Terms: agent, agent of issuer, broker-dealer, investment adviser, investment adviser agent, registration by coordination, registration by qualification, regulation a, small corporate offering registration (scor) (see registration by qualification)

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Release of lien - permalink - collapse

All > Business > Banking

To free a piece of real estate from a mortgage.
The Office of the Comptroller of the Currency - Cite This Source - This Definition
Browse Related Terms: Appraisal, Certificate of release, First mortgage, Insurance (hazard), Lien, Real Estate Settlement Procedures Act (RESPA)

Renewal - permalink - collapse

All > Business > Banking

A form of extending an unpaid loan in which the borrower's remaining unpaid loan balance is carried over (renewed) into a new loan at the beginning of the next financing period.
The Office of the Comptroller of the Currency - Cite This Source - This Definition
Browse Related Terms: Guaranteed student loan, Home Equity Loan, Loan contract, Loan fee, Loan modification provision, Loan proceeds, Loan-to-value ratio (LTV), Payday Loans, Private Mortgage Insurance (PMI), Redlining, Right of rescission, Student loan

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representative office - permalink - collapse

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Foreign banks often open representative offices as a first step in establishing a presence in America. These offices serve as a liaison between the parent bank and its clients and correspondent banks in the United States. They may develop relationships with prospective clients, but cannot conduct any banking transactions themselves.
Connecticut Deptartment of Banking - Cite This Source - This Definition
Browse Related Terms: agency, bank, branch, foreign bank, business and industrial development corporation, Federal Deposit Insurance Corporation (FDIC), Federal Emergency Management Agency (FEMA), Federal Reserve System, foreign banks with state branches, franchise, Freedom of Information Act (FOIA), Insured deposits, uninsured bank

Residual interest - permalink - collapse

All > Business > Banking

Interest that continues to accrue on your credit card balance from the statement cycle date until the bank receives your payment.

For example, if your statement cycle date was January 10 and the bank received your payment on January 20, there were ten days for which interest accrued. This amount will be posted on your next statement.

The Office of the Comptroller of the Currency - Cite This Source - This Definition
Browse Related Terms: Accrued interest, Billing cycle, Billing error, Interest rate, Periodic statement, Previous balance

Return item - permalink - collapse

All > Business > Banking

A negotiable instrument-principally a check-that has been sent to one bank for collection and payment and is returned unpaid by the sending bank.
The Office of the Comptroller of the Currency - Cite This Source - This Definition
Browse Related Terms: Alteration, Collection items, Forgery, money forwarder [transmitter] and issuer of money orders and travelers checks

Revolving credit - permalink - collapse

All > Business > Banking

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 open-end 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, Open-end credit, Overlimit