A provision allowing the lender to ask for a full payment at once, if loan installations are not paid when due.

A computer-based facility that settles payments and deposit transactions between member financial institutions.

(1) Refusal to grant credit in the amount or under the terms requested, or (2) Termination of an account, or (3) Refusal to increase the amount of an existing credit line when the applicant requested it in terms that affect only some of the debtors.

The gradual reduction of a debt by means of equal periodic payments sufficient to satisfy the debt at maturity.

Finance charge over a full year, expressed as a percentage reflecting all cost of the loan as required by the Truth-in-Lending Act.

A formal financial statement issued yearly by a corporation, which shows assets, liabilities, revenues, expenses and earnings.

The opinion of value reached by an appraiser based upon knowledge, experience and a study of pertinent data.

The increase in the value of an asset, which is due to economic improvements or additions made to it.

Anything owned by an individual, business or a credit union, which has commercial exchange value.

An official investigation to verify that all assets, liabilities, income and expenses of a financial institution are correctly stated; the audit of an institution's operation also serves to inhibit fraud and errors, and determines the accuracy of accounting and bookkeeping procedures.

Unmanned equipment used by a member to obtain financial services, generally by a plastic card, pushbuttons and a personal identification number for each user.

A procedure that allows the transfer of funds from one account to another.

Interest on an account which has been accumulated but not yet paid.

The interest rate that reflects the actual interest earned on a yearly basis expressed as a percentage.

Any payment that is more than twice the amount of any other regularly scheduled equal payment.

A debtor who is judged legally insolvent and whose remaining property is administered for distribution among his creditors.

The person actually holding a legal instrument, such as a check, payable to "bearer" or endorsed in blank.

In banking, a person who is entitled to the balance in an account upon the death of the owner (trustee) of the account.

Consists of eleven members at FAFCU who are responsible for the direction and control of the business affairs of the credit union; the board approves dividend rates, loan rates, maximum loan amounts and borrowing and investment of funds necessary to transact FAFCU business and other policy matters.

The rules adopted by the shareholders and Board of Directors to define the field of membership, set the par value of shares and give the general method by which corporate functions are to be carried on.

In a credit union, balance refers to the amount of money in a particular account. In credit, balance refers to the amount owed.

A check that a bank has refused to cash or pay because you have no funds to cover it in your account.

A check that has been paid against the maker's account by the Drawee financial institution and has been stamped with the paid date and the word "paid" on the face of the check.

Cash loan from a financial institution; obtained with a credit card (VISA) or a check that access a line of credit.

An item (usually a check) that a credit union accepts for immediate credit to an account or that they will exchange for cash.

A check drawn by a financial institution on its own funds; the maker and the Drawee institution are the same.

A device similar to a television screen that displays data received from a computer.

An instrument that is issued by the credit union in the name of the member stating that a certain sum of money is on deposit for a certain period of time. CDs vary widely in amount and term, and the interest rate depends on both of these factors.

To treat as a loss.

A personal or business check for which payment is guaranteed by the Drawee financial institution; proof of the guarantee is shown when the institution stamps the word "certified" on the face of the check.

The process of sending checks through the nation's banking system for delivery to Drawee financial institutions for final payment against the makers' checking account.

The practice used by most financial institutions to ensure checks on deposit will, in fact, be paid by the Drawee institution; it was developed to protect consumers and financial institutions from fraud and bounced checks; this system is employed by FAFCU; checks held in members' accounts earn interest during the fold period which is 2 business days for local checks and 5-7 business days for non-local checks.

The number in the upper right hand corner of a check in fraction-like figures that designates the Federal Reserve district of the Drawee financial institution, the Federal Reserve office through which the item may clear, and the state in which the Drawee institution is located.

The growing practice of storing checks at the credit union rather than returning them to the member; when a check first enters the check clearing process the information on the check is captured and transmitted by computers to the Drawee financial institution; the check itself, therefore, is not sent through the nation's check clearing system; all account transaction information is included on member's monthly statement; Credit Union's may supply copies.

Credit contracts that specify the time period over which the loan will be repaid, the total amount due, and the number of payments and due dates on which they fall.

The expenses incurred by sellers and buyers in the transfer of real estate ownership.

Property belonging to the borrower that is signed over to the credit union to sell if the loan is not repaid; collateral can be securities, such as stocks, bonds or physical property, such as a home or car.

Funds deposited in the credit union for which payment has been received, and which is available for the depositor's use.

A person, other than the borrower, who signs a note in order to give additional protection to the creditor granting the loan, because of the uncertain credit quality of the borrower.

A unifying factor or characteristic amount persons that simultaneously links them together and distinguishes them from the general public.

Interest added to the principle and it begins to earn interest.

Combining several debts into one loan usually to reduce the annual percentage rate or the dollar amount of payments made each month, extending them over a longer period of time.

A person who guarantees the payment of a loan for another person.

(1) A bookkeeping entry that increases the balance in a member's account (deposits and dividends are examples of credit entries) (2) An arrangement to receive cash, goods or services now and pay for them in the future.

Verification of the validity of a credit card and the balance allowable on the purchaser's credit line.

An organization that gathers information about a consumer's creditworthiness and to which a financial institution may apply for such information about a prospective borrower.

Insurance that provides loan payments to be made on behalf of a borrower who is temporarily disabled and up to $30,000 of the loan to be paid if the member is permanently disabled.

Maximum amount of credit available to a consumer on a specific account at any one time.

The estimate of the amount of credit that can be extended to a borrower without undue risk based on the borrower's past credit experience.

A report to the lender on the credit standing of the borrower, used to help determine creditworthiness.

A cooperative financial institution that provides consumer financial services for members of a specified group as defined by its charter (may be federally or state chartered).

An evaluation of a consumer's ability and willingness to repay a debt.

An international membership organization of professional credit union managers and other management level employees that promotes the acceptance and understanding of credit union management as a profession.

A national, non-profit, dues-supported confederation serving credit union leagues in the U.S.

An organization established primarily to serve the needs of its member credit unions, and whose business relates to the daily operations of the credit union it serves.

Dealers may offer a cash rebate as an incentive to buy an auto, boat or other vehicle. A cash rebate reduces the purchase price by the amount of the rebate. Some credit card companies offer a cash rebate card as an incentive for cardholders to make new purchases. There is usually limit on how large a rebate the cardholder may receive in a year.

A card enhanced with ATM (automated teller machine) and POS (point-of-sale) features that can be used to purchase goods and services electronically. The card replaces cash or checks. Transactions are deducted from the cardholder's checking account.

The manual or electronic processing of all daily bookkeeping type transactions, which provides detailed reports for internal departments.

A bookkeeping entry that decreases the balance of a member's account; checks posted to a checking account are examples of a debit entry.

The decreasing amount owed on a debt as monthly payments are made.

A formal, written agreement transferring title of a real property from one person to another.

A deed placed in trust by the borrower with a third party, as security for a lender.

Checking account funds that are subject to withdrawal at anytime on demand by a member's written demand (usually by check).

A representative authorized by a member to perform certain financial transactions.

A process that credits a member's account directly for a payment due to the member without the use of a check.

Take-home pay or net pay.

An itemized list of all charges giving total cost of credit.

A share of earnings distributed to shareholders of a credit union.

A member account that has had no deposit or withdrawal activity for a certain period of time.

A signed, written order, which is addressed by the maker to the Drawee, to pay a sum of money to a third person, the payee.

A down payment is the cash you deposit towards the purchase of a house, or commercial vehicle. The larger the down payment, the less you are required to borrow. The value of a car trade-in, can be used instead of a down payment when purchasing a vehicle.

The payees signature on back of the check, which shows that the payee has received payment for the amount of the check and is responsible for recourse if necessary.

In real estate, the difference between fair market-value and current indebtedness; also referred to as owner's interest.

The process whereby a credit union is required to turn over unclaimed members' account balances to the state for safekeeping; unclaimed balances are determined by the length of time (varies by state) the account has been in a dormant status.

The segregated trust account in which funds are held by the lender for payment of taxes, insurance, mortgage insurance, lease payments (ground rent, etc.).

An individual or financial institution named in a will whose function is to distribute the funds and property in an estate to the rightful heirs.

A federal law enacted in June, 1934 that allowed federal credit unions and established methods for their chartering, supervision and examination.

An independent executive agency of the United States that oversees the insuring agencies for banks (BIF) and Savings and Loans (SAIF).

The central banking system in the United States that issues money and performs services on behalf of financial institutions and the federal government.

One who holds property in trust under the terms of a trust agreement.

The total amount of interest that will be paid on a loan when the loan is repaid according to schedule.

The amount of money, represented by checks deposited to an account, that the credit union cannot use immediately because of the time it takes to process checks through the banking system.

The maximum amount of credit available to a customer for a purchase without the need for credit authorization.

The making or alteration of a document or instrument with the intent to defraud.

Obligations of the U.S. government, regarded as the highest-grade securities issued.

A period of time after a due date not subject to late charge or cancellation penalties.

A restriction on all or part of a member's balance, usually placed by a teller until a cashed or deposited check has cleared.

A list of delinquent accounts or stolen cards.

An account that has had no deposit or withdrawal activity for some time.

Regularly published statistical measure of widely accepted rates that change periodically.

Only the member is permitted to make transactions on the account.

A retirement-type savings account for individuals who wish to make tax-deductible deposits until they retire; these contributions cannot exceed specific amounts without penalties.

The amount paid for the use of money; thus, financial institutions pay depositors interest for the use of the funds on deposit and borrowers pay financial institutions interest for the use of the money advanced to them.

When a member's account does not contain enough money to cover a check or withdrawal ticket presented for payment; also referred to as non-sufficient funds (NSF).

Both the member and the joint owners may make deposits and withdrawals on the account; however, only the primary owner can negotiate loans on the account.

Any person authorized by the primary owner to transact business on the account (i.e. deposits and withdrawals); a joint owner is not automatically an FAFCU member.

A scheme to defraud financial institutions by falsely inflating the balances in two or more accounts.

All claims against a corporation which include salaries, wages, dividends declared payable and accrued taxes payable.

A legal hold or claim of one person on the property of another or security for a debt.

In credit union terms, that portion of total assets not held in fixed assets and not loaned to members; these are the funds for which the credit union must make investment decisions.

Insurance issued on the lives of borrowers to cover payment of loans in case of death.

The relationship between the amount of a mortgage loan and the appraised value of the security, expressed as a percentage of the appraised value.

A language that is universally used by financial institutions on checks, consisting of Arabic-type numbers printed on the bottom of each check; the special ink used in printing these numbers is capable of being magnetized when processed through automated check processing equipment; FAFCU used this process on share drafts.

The person who signs a check or note; person who promises to pay an obligation when due.

The date when a note or other obligation becomes due and payable.

A person holding at least one credit union share that has the opportunity to receive the credit union's financial and related services and has a right to vote at the annual meeting.

Mutual fund whose investments are in high-yield money market investments such a federal securities, CDs, and commercial paper.

A person or firm to whom property is conveyed as security for a loan (lender).

One who borrows money, giving as security a mortgage or deed of trust on real property (borrower).

Provides legislative and educational services to its members.

An organization to help senior and retired credit union members to obtain needed financial services and to help extend the benefits of credit union membership to retirees.

An independent federal financial regulatory agency responsible for chartering, supervising, examining and insuring all federal credit unions; it insures the member accounts of those state-chartered credit unions which choose, or are required by state law, to have federal insurance.

An interest-paying checking account for personal use that may be offered by both thrift and commercial institutions.

When a member's account does not contain enough money to cover a check or withdrawal ticket presented for payment; also referred to as insufficient funds.

A data-processing term for operations that do not have direct access to the computer.

Data processing operations that have direct access to a computer giving the user direct and immediate access to the computer system via terminal devices.

A credit plan under which a creditor allows an applicant to make purchases or obtain loans up to a pre-approved limit without negotiating a new contract each time.

A check that is drawn on our own credit union.

A negative balance in an account caused by the amounts of checks or withdrawals being posted to the account that exceed the balance.

A check that is (1) drawn on a credit union, (2) signed by a credit union officer or authorized signer on behalf of the credit union as a drawer, (3) a direct obligation of the credit union, and (4) provided to a member of the credit union or obtained from the credit union for remittance purposes.

The person to whom a check or other negotiable instrument is payable.

Allows members to send part of their pay or retirement checks directly to FAFCU accounts.

A rate of finance charge imposed for a given amount of time.

A member's secret identification number that must be used when accessing an automated teller machine (ATM) or Call A Teller (CAT).

A loan discount, which is a one-time charge, used to adjust the yield on a loan to what market conditions demand; each point equals 1% of the principal loan amount.

A check dated in the future; the check is not negotiable until the check date is reached.

A legal document authorizing a person to act as an agent for another person.

A free service which provides members with a convenient method of paying fixed amounts, recurring bills (primarily mortgage payments and insurance premiums); funds are automatically withdrawn from the member's share draft account each month to honor these payments; the monthly share draft statement serves as the record of payment.

The interest rate that is charged by commercial banks for loans made to those larger business borrowers that have the highest credit ratings; it is usually the best rate available.

This main savings account establishes membership in FAFCU and must be opened for each individual before he/she may use any other credit union service; the account may be opened with a minimum $5 initial deposit.

The actual amount of a loan before finance charges and other charges are added or deducted.

A written promise made by one person to pay another person a certain sum of money on demand or at a future date.

The comparison of a total batch of items with another total arrived at by a different person or at a different method.

Private mortgage insurance is a type of insurance that helps protect the mortgage company against losses due to foreclosure. This protection is provided by private mortgage insurance companies and allows mortgage companies to accept lower down payments than would normally be allowed.

Terminals that allow you to pay for retail purchases with your debit card.

Paying off an existing loan with the proceeds from a new loan, usually of the same size, and using the same property as collateral. In order to decide whether this is worthwhile, the savings in interest must be weighed against the fees associated with refinancing. The difficult part of this calculation is predicting how much the up-front money would be worth when the savings are received. Other reasons to refinance include reducing the term of a longer mortgage, or switching between a fixed-rate and an adjustable-rate mortgage. If there are prepayment fees attached to the existing mortgage, refinancing becomes less favorable because of the increased cost to the borrower at the time of the refinancing.

Money or assets allocated to various accounts to protect any depreciation in asset values or bad debt losses.

A line of credit that may be used repeatedly up to a certain specified limit.

A loan containing a provision that, upon default, certain pledged property may be claimed by the lender as payment of a debt.

A fee for service; in financial institutions, this is usually the charge applied against a member's account for maintaining a particular service.

A given amount of money a person deposits with a credit union to become a member that confers ownership rights, has a stated par value, and pays dividends.

An account that does not require the holder to maintain a minimum balance greater that the par value of a share or to give notice of intent to withdraw.

An account that will earn dividends at a particular rate if held to maturity and on which a penalty shall be assessed for the withdrawal of all or any portion of the principle amount prior to maturity.

A card signed by a member that provides 1st Advantage Federal Credit Union with a specimen signature for verification purposes; signature cards may also contain information about sighing requirements or restrictions.

A method of calculating interest on an outstanding balance that produces a declining finance charge with each payment of the installment loan.

A check that has not been presented for payment within six months from the date the check was written; credit unions are not legally obligated to pay stale-dated checks.

A member's order not to pay a specific draft or check that has been issued; a $10 processing fee is charges by FAFCU for a stop payment.

Consists of 3 members who provide the membership with the internal check on financial and operational matters; this is necessary to ensure that the activities of the credit union are being conducted in the best interest of the members and toward FAFCU's goals.

Thrifts include mutual savings banks, savings and loans and credit unions.

Special checks sold with an insurance feature that protects the buyer against loss if the checks are lost, stolen or destroyed.

Short term US Treasury securities issued in minimum denominations of $10,000 and usually having maturities of three, six or twelve months.

The period of a loan, generally measured in years. For auto loans this generally ranges between two and five years. For a mortgage loan it is generally 15 or 30 years.

A dealer assigns a trade-in value to an auto, boat or other vehicle that a buyer wishes to exchange for another vehicle. Trade-in value is subtracted from the purchase price of the vehicle. Trade-in value is often based on the published book value of the vehicle. As a general rule, a vehicle with less millege and use has a greater trade-in value.

The part of the member's balance for which checks deposited have not cleared for payment.

A loan granted on the basis of a borrowers creditworthiness and signature; not secured by collateral.

Charging a higher rate of interest than allowed by law.

A loan plan where the interest charged over the life of the loan may vary in accordance with an index that is readily verifiable by the borrower and beyond the control of the lender.

A mortgage with an interest rate that fluctuates during the life of the mortgage.

The transfer of funds to another location through a correspondent bank by telephone

The effective real rate of interest paid on a savings account or CD; the effective rate (yield) increases as the frequency of compounding of interest increases