Certificate of DivestitureThe certificate of divestiture (CD) was created by the Ethics in Government Act of 1978 to reduce the tax burden of divestiture that can occur when an…
Certificates of Deposit (CD)(CD)A debt instrument issued by banks, usually paying interest, with maturities ranging from seven days to several years.
Certified CheckA personal check drawn by an individual that is certified (guaranteed) to be good.
Chapter 13 Bankruptcythis type of bankruptcy sets a payment plan between the homeowner and the creditor monitored by the bankruptcy court.
Chapter 7 Bankruptcya bankruptcy that requires assets be liquidated in exchange for the cancellation of debt.
Charge-offThe balance on a credit obligation that a lender no longer expects to be repaid and writes off as a bad debt.
Charter NumberA unique number assigned to the credit union by NCUA, You can find a specific credit union’s charter number by visiting, http://researchcu.ncua.
Check (Share Draft)A written order instructing a financial institution to pay immediately on demand a specified amount of money from the member's account to the person named…
Check 21 ActCheck 21 is a Federal law that is designed to enable banks to handle more checks electronically, which is intended to make check processing faster and…
Check Deposit ReturnThe fee that is charged to an account holder if a check that is deposited in the account is returned by the paying bank (because of insufficient funds…
Check holdWhen you deposit a check, your bank or other financial institution may delay crediting the money to your account during what's called the check hold…
Check truncationThe conversion of data on a check into an electronic image after a check enters the processing system.
Checking accountA demand deposit account subject to withdrawal of funds by check.
Checking Account (Share Draft Account)A demand deposit share account subject to withdrawal of funds by check. Credit unions refer to a checking account as a share draft account.
ChexSystemsThe ChexSystems, Inc. network is comprised of member financial institutions that regularly contribute information on mishandled checking and savings…
ChurningExcessive buying and selling in a customer's account undertaken to generate commissions for the broker.
Circuit breakerAfter the stock market crash of 1987, stock and commodities exchanges established a system of trigger-point rules known as circuit breakers.
Citizen or Resident TestAssuming all other dependency tests are met, the citizen or resident test allows taxpayers to claim a dependency exemption for persons who are U.S.
ClaimYour request for the insurance company to pay you an amount under the terms of your policy.
Claims AdjusterA person an insurance company hires to settle claims. The adjuster can be a company employee or an independent party under contract with the company.
Claims Procedure ActEffective July 1, 2003, The South Carolina Retirement Systems Claims Procedure Act provides remedies available in a dispute or controversy between the…
ClearanceClearance is the first half of the process that completes your order to buy or sell a security.
Clearing firmClearing firms handle the back-office details of securities transactions between broker-dealers, making the settlement process streamlined and efficient.
ClearinghouseClearing corporations, or clearinghouses, provide operational support for securities and commodities exchanges.
Closed-end fundClosed-end mutual funds are actively managed funds that raise capital only once, by issuing a fixed number of shares.
closed-end fundsA fund company that issues a fixed number of shares. Its shares are not redeemable, but are bought and sold on stock exchanges or the over-the-counter…
Closed-End LoanGenerally, any loan in which the amount advanced, plus any finance charges, is expected to be repaid in full by a specified date.
Closely heldA closely held corporation is one in which a handful of investors, often the people who founded the company, members of the founders' families, or…
Closingwhen selling a house, the process of transferring ownership from the seller to the buyer, the disbursement of funds from the buyer and the lender to the…
Closing (or settlement) costsFees paid when you close (or settle) on a loan. These fees may include application fees; title examination, abstract of title, title insurance, and…
Closing a Mortgage LoanThe consummation of a contractual real estate transaction in which all appropriate documents are signed and the proceeds of the mortgage loan are then…
Closing CostsThe expenses incurred by sellers and buyers in transferring ownership in real property.
Closing or SettlementThe meeting between the seller, buyer and closing attorney when the property legally changes hands, the transaction is legally closed, or both.
Closing priceThe closing price of a stock, bond, option, or futures contract is the last trading price before the exchange or market on which it is traded closes for…
Closing StatementA closing statement, also called a HUD1 or settlement sheet, is a legal form your closing or settlement agent uses to itemize all of the costs you and the…
Closing Statement or Settlement StatementThis is a document prepared by the Title Company that details the final and specific costs involved for both the buyer and seller in a real estate…
CMOs (Collateralized Mortgage Obligations)Mortgage-backed securities, segmented into tranches, so that investors can choose a tranche that fits their desired timing of payments.
Co-applicant EthnicityEthnicity of the co-applicant. This is reported for originated loans and for loan applications that do not result in an origination.
Co-applicant RaceRace of the co-applicant. This is reported for originated loans and for loan applications that do not result in an origination.
Co-applicant SexSex of the co-applicant. This is reported for originated loans and for loan applications that do not result in an origination.
Co-Homeownersone or more persons who have signed a loan note, and are equally responsible for repaying the loan.
Co-MakerA person who signs a note to guarantee a loan made to another person and is jointly liable with the maker for repayment of the loan.
Co-SignerAn individual who signs the note of another person as support for the credit of the primary signer and who becomes responsible for the obligation.
CoinsuranceWhen your healthcare insurance has a coinsurance provision, you and your insurer divide the responsibility for paying doctor and hospital bills by…
Coinsurance ClauseAn agreement with the insurance company in which you agree to carry insurance on your property in an amount equal to a certain percentage of its actual…
CollateralAssets that are offered to secure a loan or other credit. For example, if you get a real estate mortgage, the bank's collateral is typically your house.
Collateralized Mortgage Obligation (CMO)(CMO)Mortgage-backed securities, segmented into tranches, so that investors can choose a tranche that fits their desired timing of payments.
CollectibleCollectibles include virtually any items of personal property that are unique, limited in quantity, antique, or hold special quality or personal…
Collection AgencyA company hired by a creditor to collect a debt that is owed. Creditors typically hire a collection agency only after they have made efforts to collect…
Collectionsthe efforts a lender takes to collect past due payments.
CollegeSureî CDCollegeSureî CDs are certificates of deposit designed to let you prepay future college costs at today's rates, plus a premium based on the child's…
CollisionThis benefit pays to repair damage to your car as a result of an accident. Most banks or lenders require you to buy this coverage to receive a car loan.
Collision CoveragePays for damage to your vehicle when it collides with another vehicle or object or if it overturns.
Combined Loan-to-Value (CLTV)(CLTV)The relationship of the outstanding balances of a first and second mortgage to the value of the home used to determine the maximum percentage of value…
Commercial bankCommercial banks offer a full range of retail banking products and services, such as checking and savings accounts, loans, credit cards, and lines of…
Commercial PaperShort-term, unsecured, discounted notes issued by institutional borrowers and sold to investors for short term cash investment needs.
CommissionA portion of the policy premium that is paid to an insurance producer (agent) by the insurance company as compensation for the producer’s work.
CommitmentAn offer to grant a mortgage loan which outlines the terms, the amount of the loan, the interest rate and any conditions that the commitment or approval…
CommodityCommodities are bulk goods and raw materials, such as grains, metals, livestock, oil, cotton, coffee, sugar, and cocoa, that are used to produce consumer…
Commodity Futures Trading Commission (CFTC)The CFTC is the federal agency that regulates the US futures markets, as the Securities and Exchange Commission (SEC) regulates the securities markets.
Common Access Card (CAC)An Agency smartcard issued as standard identification for agency personnel, selected reserve personnel, civilian employees, and eligible contractor…
common sharesSecurities which represent part ownership in a company and generally carry voting privileges.
Common StockWhen you own common stock, your shares represent ownership in the corporation and give you the right to vote for the company's board of directors and…
CommunityA political entity that has the authority to adopt and enforce floodplain ordinances for the area under its jurisdiction.
Community propertyIn nine US states, any assets, investments, and income that are acquired during a marriage are considered community property, or owned jointly by the…
Community Rating System (CRS)(CRS)A program developed by the FEMA Mitigation Division to provide incentives for those communities in the National Flood Insurance Program that have gone…
Company profileA summary of information about an insurance company, including its license status, financial data, complaint history, and a history of regulatory action.
Comparative faultA method of attributing fault to each party who contributed to causing an accident.
Comparative Negligence LawAn Illinois law that sets forth how negligence for an accident is determined. Under these rules, you can collect from an at-fault driver only if you are…
Competitive traderCompetitive traders, also known as registered competitive traders or floor traders, buy and sell stocks for their own accounts on the floor of an exchange.
ComplaintA written communication primarily expressing a grievance against an insurance company or agent.
Complaint historyInformation collected or maintained by the Texas Department of Insurance relating to the number of complaints received against a particular insurer, agent…
CompleteThe review status of a financial disclosure report whose required reviews are finished and has all the required eSignatures.
Composite tradingComposite trading figures report end-of-day price changes, closing prices, and the daily trading volume for stocks, warrants, and options listed on a…
Compound InterestCompound interest is the interest paid on a deposit or share account, which is added to the account balance at the end of the dividend period.
CompoundingThe process by which income is earned on income that has previously been earned.
Comprehensive CoverageCoverage that pays for damage to or the loss of your vehicle from causes other than collision (example: hail, vandalism, flood, fire and theft, etc.
Comprehensive physical damage coverageOptional insurance that pays for damage to your auto caused by things other than collision or rolling the car over such as fire, theft, vandalism, flood…
Comptroller of the CurrencyThe Office of the Comptroller of the Currency, housed in the US Department of the Treasury, charters, regulates, and oversees national banks.
compulsory payroll taxAn automatic tax collected from employers and employees to finance specific programs.
ConditionsPart of an insurance policy that states your obligations and those of your insurance company.
CondominiumThat form of ownership of real property in which each unit owner has an undivided interest in common elements.
Conduit IRAA conduit IRA is another name for a rollover IRA, which you establish with money you roll over from a 401(k), 403(b), or other retirement savings plan.
confirmationThis written notice provided by a brokerage acknowledges completion of a securities transaction.
Conforming LoanA loan which meets all requirements to be eligible for purchase or securitization by FNMA or FHLMC (Fannie Mae or Freddie Mac) which has a loan amount…
ConglomerateA conglomerate is a corporation whose multiple business units operate in different, often unrelated, areas.
Conscience fundConscience funds, also known as socially responsible funds, allow you to invest in companies whose business practices are in keeping with your personal…
Consensus recommendationA consensus recommendation for an individual stock compiles ratings from a number of analysts who track that stock.
ConservatorshipConservatorship is a legal procedure for the management of financial institutions for an interim period during which the institution’s conservator…
Construction LoanA short-term, interim loan that provides disbursements to facilitate the construction of a home. Funds are disbursed at intervals as work progresses.
ConsumerAny natural person obligated or allegedly obligated to pay a debt incurred for personal, family or household use.
Consumer confidence indexThe consumer confidence index is released each month by the Conference Board, an independent business research organization.
Consumer Credit Counseling ServiceA service which specializes in working with consumers who are overextended with debts and need to make arrangements with creditors.
consumer price indexA statistic that is a measure of the change in the cost of living for consumers.
Consumer price index (CPI)The consumer price index (CPI) is compiled monthly by the US Bureau of Labor Statistics and is a gauge of inflation that measures changes in the prices of…
Consumer Reporting AgencyAn agency that regularly collects or evaluates individual consumer credit information or other information about consumers and sells consumer reports for…