Banking terms starting with P

35 terms

  1. Par (Face) Value The dollar value of a security stated by the issuer and the total amount to be repaid to the investor as principal.
  2. Parity Payment Part of the NCUA's guarantee obligation on the NGNs that represents the excess of the unpaid Note Principal Balance (after related payments have been…
  3. Participating Community A community for which the Federal Emergency Management Agency (FEMA) has authorized the sale of flood insurance under the National Flood Insurance Program…
  4. Passbook A book in ledger form in which are recorded all deposits, withdrawals, and earnings of a customer's savings account.
  5. Past Due Item Any note or other time instrument of indebtedness that has not been paid on the due date.
  6. Payday Loans A small-dollar, short-term loan that a borrower promises to repay out of their next paycheck or deposit of funds.
  7. Payee The person or organization to whom a check, draft, or note is made payable.
  8. Paying (Payor) Bank A bank upon which a check is drawn and that pays a check or other draft.
  9. Payment Due Date The date on which a loan or installment payment is due. It is set by a financial institution.
  10. Payoff The complete repayment of a loan, including principal, interest, and any other amounts due.
  11. Payoff Statement A formal statement prepared when a loan payoff is contemplated. It shows the current status of the loan account, all sums due, and the daily rate of…
  12. Payor The person or organization who pays.
  13. Periodic Rate The interest rate described in relation to a specific amount of time. The monthly periodic rate, for example, is the cost of credit per month; the daily…
  14. Periodic Statement The billing summary produced and mailed at specified intervals, usually monthly.
  15. Personal Identification Number (PIN) Generally a four-character number or word, the PIN is the secret code given to credit or debit cardholders enabling them to access their accounts.
  16. Personal Investment Corporation (PIC) A PIC is a term used in the banking industry to refer to an IBC. PICs are generally created for the private bank's client in order to hold the client's…
  17. PITI Common acronym for principal, interest, taxes, and insurance—used when describing the monthly charges on a mortgage.
  18. Point of Sale (POS) 1) The location at which a transaction takes place. 2) Systems that allow bank customers to effect transfers of funds from their deposit accounts and…
  19. Potentially abusive tax shelter Any tax shelter required to be registered under prior federal law or is a reportable transaction under present federal law or state law.
  20. Power of Attorney A written instrument which authorizes one person to act as another's agent or attorney.
  21. Pre-payment The payment of a debt before it actually becomes due.
  22. Preauthorized Electronic Fund Transfers An EFT authorized in advance to recur at substantially regular intervals.
  23. Preauthorized Payment A system established by a written agreement under which a financial institution is authorized by the customer to debit the customer's account in order to…
  24. Preferred Risk Policy (PRP) A policy that offers fixed combinations of building/contents coverage or contents-only coverage at modest, fixed premiums.
  25. Prepayment The payment of a debt before it actually becomes due.
  26. Prepayment Clause A clause in a mortgage allowing the mortgagor to pay off part or all of the unpaid debt before it becomes due.
  27. Prepayment Penalty A penalty imposed on a borrower for repaying the loan before its due date. (In the case of a mortgage, this applies when there is not a prepayment clause…
  28. Previous Balance The cardholder's account balance as of the previous billing statement.
  29. Prime Loans Loans typically extended to the most credit-worthy borrowers that generally carry a lower interest rate compared to other types of loans.
  30. Principal Balance The outstanding balance on a loan, excluding interest and fees.
  31. Principal Balance​ The amount owed on a debt.
  32. Principal, Interest, Taxes, and Insurance (PITI) Common acronym for principal, interest, taxes, and insurance—used when describing the monthly charges on a mortgage.
  33. Private Banking Offshore banking services are most commonly handled by the private banking departments of commercial banks or by private banks that cater solely to…
  34. Private Mortgage Insurance (PMI) Insurance offered by a private insurance company that protects the bank against loss on a defaulted mortgage up to the limit of the policy (usually 20 to…
  35. Promoter Any person who, directly or indirectly, organizes or assists in the organization of a tax shelter or who participates in the sale of any interests in a…