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A paid-up policy is a whole life insurance policy for which no additional premium payments are required to keep in force.
Generally, a standard paid-up policy lasts the rest of your lifetime or until you reach a specific age, such as 100. Some policies are designed to be fully paid up at an age specified in the contract, such as whole life policies for which you pay no more premiums after age 65.
- Browse Related Terms: Annual renewable term insurance, Cash value, Convertible term, Council of Economic Advisors (CEA), Elimination period, Guaranteed renewable policy, Lapse, Level term insurance, Life insurance, Nonforfeiture clause, Own-occupation policy, Paid-up policy, Premium, Renewable term, Term insurance, Variable Life Insurance, Waiver of premium
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The reporter panel listing is the universe of all institutions that reported under HMDA. A separate panel exists for each reporting year.
- Browse Related Terms: Action Taken Date, Action Taken Type, Applicant Ethnicity, Applicant Race, Applicant Sex, Application Received Date, Co-applicant Ethnicity, Co-applicant Race, Co-applicant Sex, Good Faith Estimate (GFE), Gross Annual Income, Lien Status, Loan Application Number, Loan Application Register (LAR), Panel - HMDA Reporter Panel Listing, Reasons for Denial, Respondent Name, Transmittal Sheet (TS), Type of Purchaser
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Short-term, unsecured debt securities that a corporation issues are often referred to as paper - for short-term commercial paper. The term is sometimes used to refer to any corporate bonds, whether secured or unsecured, short or long term.
- Browse Related Terms: cash equivalent, Commercial Paper, Debt security, equity, Hypothecation, Liquid asset, Liquidity, money market, Money supply, money-market fund, Paper, Working capital
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If you own an asset that increases in value, any increase in value is a paper profit, or unrealized gain. If you sell the asset for more than you paid to buy it, your paper profit becomes an actual profit, or realized gain.
The same relationship applies if the asset has lost value. You have a paper loss until you sell, when it becomes a realized loss.
You owe no capital gains tax on a paper profit, though you use the paper value when calculating gains or losses in your investment portfolio, for example. The risk with a paper profit is that it may disappear before you realize it. On the other hand, you may postpone selling because you expect the value to increase further.
- Browse Related Terms: Basis, Basis price, Capital Gain, Capital gains tax (CGT), Capital loss, Community property, Convertible hedge, Cost basis, Earnings, Fund family, Investment Income, Long-term capital gain (or loss), Paper profit (or loss), Phantom gains, Profit, Realized gain, Return, Return on investment, Sell short, Step-up in basis, Unrealized gain, Unrealized loss, Wash sale
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Par value is the face value, or named value, of a stock or bond.
With stocks, the par value, which is frequently set at $1, is used as an accounting device but has no relationship to the actual market value of the stock.
But with bonds, par value, usually $1,000, is the amount you pay to purchase at issue and the amount you receive when the bond is redeemed at maturity.
Par is also the basis on which the interest you earn on a bond is figured. For example, if you are earning 6% annual interest on a bond with a par value of $1,000, that means you receive 6% of $1,000, or $60.
While the par value of a bond typically remains constant for its term, its market value does not. That is, a bond may trade at a premium, or more than par, or at a discount, which is less than par, in the secondary market.
The market price is based on changes in the interest rate, the bond's rating, or other factors.
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A community for which the Federal Emergency Management Agency (FEMA) has authorized the sale of flood insurance under the National Flood Insurance Program (NFIP).
- Browse Related Terms: Federal Emergency Management Agency (FEMA), flood insurance, Flood Plain, living will, Medicaid, National Flood Insurance Program (NFIP), Participating Community, Regular Program Community, Special Flood Hazard Area (SFHA)
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When policyholders have what is called a participating policy from a mutual insurance company, they are eligible to receive dividends based on the company's financial performance.
When claims are low and the company's investments perform well, dividends tend to rise. On the other hand, when claims are high and investment returns slump, dividends are likely to fall.
The dividends on a participating policy aren't guaranteed, so they may not be paid every year. Unlike the dividends paid to a company's shareholders, participating policy dividends are considered a return of premium. As a result, the dividends are not taxed as income.
Dividends may typically be paid out as cash, as additional insurance coverage, or may be used to reduce policyholders' premiums or repay policy loans. Rules vary from company to company.
- Browse Related Terms: Car insurance, Catastrophic illness insurance, claim, Credit Disability Insurance (CDI), Deductible, Exclusion, Homeowner's insurance, Indemnity insurance, Insurance (Hazard), Named perils policy, Participating policy, Policyholder or policy owner, Pre-existing Condition, Preferred Risk Policy (PRP), Rider
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- See annual fee.
- Browse Related Terms: Annual Percentage Rate (APR), Balance Transfer, Balance-transfer fee, Cash-advance fee, Interest rate, Membership fee, Participation fee
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A PAS Employee is one who holds a senior non-career position that requires nomination by the President and confirmation by the Senate.
- Browse Related Terms: Career SES Employee, Non-Career SES Employee, PAS Employee
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When a corporation or government agency buys loans from lenders to pool and package as securities for resale to investors, the products may be pass-through securities.
That means regular payments of interest and return of principal that borrowers make on the original loans are funneled, or passed through, to the investors.
Unlike standard bonds, whose principal is repaid at maturity, the principal of a pass-through security is repaid over the life of the debt.
The best known pass-throughs are the mortgage-backed bonds offered by Fannie Mae, Freddie Mac, and Ginnie Mae. However, you can also buy pass-through securities backed by car loans, credit card debt, and other types of borrowing. Those are known as asset-backed securities.
- Browse Related Terms: Credit rating, Default, Foreclosure, Government-Sponsored Enterprise (GSEs), Guarantor, Home Equity Line of Credit (HELOC), Mortgage backed security, Pass-through security, Secured bond, Secured credit card, Securitization
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A book in ledger form in which are recorded all deposits, withdrawals, and earnings of a member's savings account.
- Browse Related Terms: Annual percentage yield (APY), certificate of deposit, Certificate of deposit (CD), Compound Interest, Escheat, Eurodollar, Individual Account, Interest Rate (High/Low), Jumbo CD, Passbook, Savings account, Simple interest, Time deposit
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You collect passive income from certain businesses in which you aren't an active participant.
They may include limited partnerships where you're a limited partner, rental real estate that you own but don't manage, and other operations in which you're an investor but have a hands-off relationship.
For example, if you invest as a limited partner, you realize passive income or passive losses because you don't participate in operating the partnership and have no voice in the decisions the general partner makes.
In some cases, income from renting real estate is also considered passive income. On the other hand, any money you earn or realize on your investment portfolio of stocks, bonds, and mutual funds is considered active income. That includes dividends, interest, annuity payments, capital gains, and royalties.
Any losses you realize from selling investments in your portfolio are similarly active losses.
Internal Revenue Service (IRS) regulations differentiate between passive and active income (and losses) and allow you to offset passive income only with passive losses and active income with active losses.
- Browse Related Terms: Blind pool, Hard assets, Hedge fund, Limited partner, Limited partnership, Passive income, Passive losses, Private equity, Real Estate, Venture capital (VC)
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You have passive losses from businesses in which you aren't an active participant. These include limited partnerships, such as real estate limited partnerships, and other types of activities that you don't help manage.
You can deduct losses from passive investments against income you earn on similar ventures. For example, you can use your losses from rental real estate to reduce gains from other limited partnerships.
Or you can deduct those losses from any profits you realize from selling a passive investment. However, you can't use passive losses to offset earned income, income from your actively managed businesses, or investment income.
- Browse Related Terms: Blind pool, Hard assets, Hedge fund, Limited partner, Limited partnership, Passive income, Passive losses, Private equity, Real Estate, Venture capital (VC)
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An index mutual fund or exchange traded fund is described as passively managed because the securities in its portfolio change only when the make-up of the index it tracks is changed.
For example, a mutual fund that tracks the Standard & Poor's 500 Index buys and sells only when the S&P index committee announces which companies have been added to and dropped from the index.
In contrast, when mutual funds are actively managed, their managers select investments with an eye to enabling the fund to achieve its investment objective and outperform its benchmark index. Their portfolios tend to change more frequently as a result. They also tend to have higher fees.
The performance of passively managed indexed investments and their risk profiles tend to correspond closely to the asset class or subclass that the index tracks. They tend to be more popular in bull markets when their returns reflect the market strength and less popular in bear markets when active managers may provide stronger returns.
- Browse Related Terms: Actively managed fund, Buy side, Closed-end fund, Economy, Enhanced index fund, index fund, Institutional investor, Managed account, Management fee, Money manager, Passively managed, Portfolio manager, Prudent man rule, Public company, Wrap account
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Any note or other time instrument of indebtedness that has not been paid on the due date.
- Browse Related Terms: Cash market, Contango, Counterparty, Counterparty risk, Foreign exchange (FOREX), Forward contract, futures, options, Past Due Item, Spot market, Spot price
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A bank account titled payable-on-death (POD) lets you name one or more beneficiaries to whom the assets are paid when you die.
POD accounts can be useful estate planning tools in the states where they are available, since the assets in the account can pass to your beneficiaries directly, outside the probate process.
A similar type of registration is available in some states for securities and brokerage accounts, known as transferable-on-death, or TOD, accounts.
- Browse Related Terms: Estate account, Executor/Executrix, Irrevocable trust, Payable-on-death, Probate, Probate estate, Transferable-on-death, will
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A small-dollar, short-term loan that a borrower promises to repay out of their next paycheck or deposit of funds. Payday loans generally charge high fees and interest.
- Browse Related Terms: Closed-End Loan, Collateral, Debit balance, Guaranteed Student Loan, Lienholder, Loan, Loan Contract, Loan Fee, Loan Modification Provision, Loan proceeds, Loan-to-value ratio (LTV), Payday Loans, PITI, Rehypothecation, Secured Loan, Student Loan, Terms
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The person or organization to whom a check, draft, or note is made payable.
- Browse Related Terms: affidavit, Asset management account (AMA), Charge-off, ChexSystems, Credit line, Drawer, Insufficient funds, Kiting, Lifeline account, Local check, money-market account, Negotiable-order-of-withdrawal account, Overdraft, Overdraw, Payee, Stale-Dated Check
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A limit on the amount that your monthly mortgage payment on a loan may change, usually a percentage of the loan. The limit can be applied each time the payment changes or during the life of the mortgage. Payment caps may lead to negative amortization because they do not limit the amount of interest the lender is earning.
- Browse Related Terms: Adjustable-Rate Mortgage (ARM), amortization, balloon mortgage, Convertible ARM, Debarment, Fixed-Rate Mortgage (FRM), Interest-only mortgage, Lock-In, Lock-in agreement, Mortgage life insurance, Negative amortization, Payment Cap, Right of rescission, Self-Amortizing Loans, Swap, term, Weighted Average Life (WAL)
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The date on which a loan or installment payment is due. It is set by the financial institution and disclosed on your original loan note. Any payment received after this date is considered late and fees and penalties may be assessed.
- Browse Related Terms: amortization, Asset-backed bond, Credit card account agreement, Date of maturity, Debt-to-income ratio (DTI), Deferred payment, Delinquency, Honorarium, Late Charge, Maturity Date, Payment Due Date, Prepayment, Self-amortizing loan
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