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Business Law Ch 20
Business Law with UCC Applications Ch 20
| Term | Definition |
|---|---|
| Acceleration | A provision in a mortgage agreement that allows the mortgagee to demand the entire balance due when the mortgager misses a single installment payment |
| Adjustable-Rate Mortgage (ARM) | In property law, a variable or changing rate of interest in a mortgage agreement that fluctuates based on the index (the bank's prime rate or the Federal Reserve's discount rate, and so) to which the mortgage is tied |
| Asset-Backed Security | In property law, lending money by establishing a security interest in goods such as cars, furniture, boats, and so on. |
| Attachment | The act of taking in a person's property and bringing it into the custody of law. |
| Balloon-Payment Mortgage | A mortgage that has relatively low fixed payments during the life of the mortgage followed by one large final (balloon) payment |
| Buyer in the Ordinary Course of Business | A person who in good faith and without knowledge that the sale is in violation of ownership rights or security interests of third party buys goods in ordinary course from a person in the business of selling goods of that kind, not including a pawn broker |
| Collateral | the property that is subject to a security interest. |
| Construction Loan | A loan for the building of a home that permits staggered payments that fall due at various stages in the building process |
| Consumer Goods | Goods normally used for personal, family, or household purposes |
| Conventional Fixed-Rate Mortgage | A mortgage that involves no government backing by either insurance or guarantee |
| Deed of trust | A formal written instrument that transfers legal ownership of real property to a third party while the mortgagor remains on the property. The third party holds certain rights to that property as security for the mortgagor's creditors. |
| Dodd-Frank Wall Street Reform and Consumer Protection Act | An act passed by Congress to deal with the 21st century financial crisis. |
| Equipment | Goods that are used or bought for use primarily in business. |
| Equity of Redemption | A mortgagor's right to pay off the mortgage in full, including interest. |
| Farm Products | Crops, livestock, or supplies used or produced in farming operations. |
| Fixtures | An article of personal property physically attached to real property in such a way that an interest arises in it under real estate law. |
| Flexible-Rate Mortgage | A mortgage that has a rate of interest that changes according to fluctuations in the index to which it is tied. Also called variable-rate mortgage. |
| Floating Lien | A provision, placed by the creditor in a security agreement that a security interest of the creditor also applies to goods the debtor acquires at a later time. |
| Foreclosure | The right of a mortgagee to apply to a court to have property sold when the mortgagor defaults or fails to perform some agreement in the mortgage. |
| Government-Sponsored Enterprise (GSE) | |
| Graduated-Payment Mortgage | A mortgage that has a fixed interest rate during the life of the mortgage; however, the monthly payments made by the mortgagor increase over the term of the loan. |
| Home Affordable Modification Program (HAMP) | A program set up by the Department of the Treasury to support the efforts of homeowners who, though in default, wish to continue to make payments on their mortgages. |
| Home Equity Loan | A line of credit made available to home-owners based on the value of the property over and above any existing mortgages |
| Interest-only Mortgage | In property law, a mortgage in which the borrower pays only the interest for a period of time, usually one to three years, as set by the agreement. |
| Inventory | Goods held for sale or lease, or raw materials used or consumed in a business. |
| Junior Mortgage | A mortgage subject to a prior mortgage. |
| Liar Loan | |
| Mortgage | A transfer of interest in property for the purpose of creating a security for a debt. |
| Mortgage-Backed Security | |
| Mortgagee | The party who lends money and takes purpose of creating a security for a debt. |
| Mortgagor | The party who borrows money and gives a mortgage to the lender or mortgagee as security for the loan. |
| NINJA Loan | A loan that has been negotiated by a borrower with "no income, no job, and no assets." |
| Participation Loan | A loan in which the borrower will transfer certain ownership or equity rights to the lender in exchange for a lower interest rate or a lower down payment. |
| Perfected | The state of a security interest when the secured party has done everything that the law requires to give the secured party greater rights to the goods than others have. |
| Purchase Money Security Interest | A security interest that arises when someone lends money to a consumer and then takes a security interest in the goods that the consumer buys. |
| Qualified Mortgage | |
| Reverse Mortgage | A type of loan that allows home owners, over the age of 62, to convert some of the equity in their home into cash while retaining ownership of their home. |
| Second Mortgage | A mortgage subject to a prior mortgage. |
| Secured Loan | A loan in which creditors have something of value, usually called collateral, from which they can be paid if the debtor does not pay. |
| Secured Party | A lender or seller who holds a security interest. |
| Securitization | The process of bundling securities and then selling them to big investors. |
| Security Agreement | A written agreement that creates a security interest. |
| Security Interest | A creditor's right to use collateral to recover a debt. |
| Subject to the Mortgage | An agreement whereby the seller of real property that is already mortgaged agrees to continue paying the mortgage payments. |
| Troubled Asset Relief Program (TARP) | A federal program that is designed to allow the government to buy troubled assets that resulted from the securitization epidemic. |
| Unsecured Loan | A loan in which creditors have nothing of value that they can repossess and sell in order to recover the money owed to them by the debtor. |
| Variable-rate Mortgage | A mortgage that has a rate of interest that changes according to fluctuations in the index to which it is tied. Also called flexible-rate mortgage. |
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dengler
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