Various Banking Term with Letter C

This is the list of various banking terms starting with letter C

 

Callable Bonds: Bonds that give the issuer the right to redeem the bonds before their stated maturity.

Call Option: The right to buy the underlying securities at a specified exercise price on or before a specified expiration date.

Capital Gain: The amount by which the proceeds from the sale of a capital asset exceed its original purchase price.

Capital Markets: The market in which long-term securities such as stocks and bonds are bought and sold.

Cancelled Cheque :A cheque that a bank has paid, charged to the account holder's account, and then endorsed. Once canceled, a cheque is no longer negotiable.

Cashier's Cheque:A cheque drawn on the funds of the bank, not against the funds in a depositor's account. However, the depositor paid for the cashier's cheque with funds from their account. The primary benefit of a cashier's cheque is that the recipient of the cheque is assured that the funds are available.

Cease and Desist Letter:A letter requesting that a company stops the activity mentioned in the letter.

Certificate of Deposit:A negotiable instrument issued by a bank in exchange for funds, usually bearing interest, deposited with the bank.

Certificate of Release:A certificate signed by a lender indicating that a mortgage has been fully paid and all debts satisfied.

Certified Cheque:A personal cheque drawn by an individual that is certified (guaranteed) to be good. The face of the cheque bears the words "certified" or "accepted," and is signed by an official of the bank or thrift institution issuing the cheque. The signature signifies that 

• the signature of the drawer is genuine, and 
• sufficient funds are on deposit and earmarked for payment of the cheque.

Charge-off:The balance on a credit obligation that a lender no longer expects to be repaid and writes off as a bad debt.

Cheque:A written order instructing a financial institution to pay immediately on demand a specified amount of money from the cheque writer's account to the person named on the cheque or, if a specific person is not named, to whoever bears the cheque to the institution for payment.

Cheque 21 Act:Cheque 21 is a Federal law that is designed to enable banks to handle more cheques electronically, which is intended to make cheque processing faster and more efficient. Cheque 21 is the short name for the Cheque Clearing for the 21st Century Act, which went into effect on October 28, 2004.

Cheque Truncation:The conversion of data on a cheque into an electronic image after a cheque enters the processing system. Cheque truncation eliminates the need to return cancelled cheques to customers.

Chequeing Account:A demand deposit account subject to withdrawal of funds by cheque.

ChexSystems:The ChexSystems, Inc. network is comprised of member financial institutions that regularly contribute information on mishandled chequeing and savings accounts to a central location. ChexSystems shares this information among member institutions to help them assess the risk of opening new accounts.ChexSystems only shares information with the member institutions; it does not decide on new account openings. Generally, information remains on ChexSystems for five years.

Closed-End Credit :Generally, any credit sale agreement in which the amount advanced, plus any finance charges, is expected to be repaid in full by a specified date. Most real estate and automobile loans are closed-end agreements.

Closed-End Loan:Generally, any loan in which the amount advanced, plus any finance charges, is expected to be repaid in full by a specified date. Most real estate and automobile loans are closed-end agreements.

Closing a Mortgage Loan:The consummation of a contractual real estate transaction in which all appropriate documents are signed and the proceeds of the mortgage loan are then disbursed by the lender.

Closing Costs:The expenses incurred by sellers and buyers in transferring ownership in real property. The costs of closing may include the origination fee, discount points, attorneys' fees, loan fees, title search and insurance, survey charge, recordation fees, and the credit report charge.

Collateral:Assets 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. Collateral becomes subject to seizure on default.

Collected Funds:Cash deposits or cheques that have been presented for payment and for which payment has been received.

Collection Agency:A 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 the debt themselves, usually through letters and telephone calls.

Collection Items:Items-such as drafts, notes, and acceptances-received for collection and credited to a depositor's account after payment has been received. Collection items are usually subject to special instructions and may involve additional fees. Most banks impose a special fee, called a collection charge, for handling collection items.

Collective Investment Funds (CIFs):A Collective Investment Fund (CIF) is a trust created and administered by a bank or trust company that commingles assets from multiple clients. The Federal securities laws generally require entities that pool securities to register those pooled vehicles (such as mutual funds) with the SEC. However, Congress created exemptions from these registration requirements for CIFs so long as the entity offering these funds is a bank or other authorized entity and so long as participation in the fund is restricted to only those customers covered by the exemption. If these limitations are met, CIFs are exempt from SEC registration and reporting requirements.

Co-Maker:A 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. (Also known as a Co-signer.)

Community Reinvestment Act:The Act is intended to encourage depository institutions to help meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods. It was enacted by the Congress in 1977.

Commercial Paper: Short-term and unsecured promissory notes issued by corporations with very high credit standings.

 

Common Stock: Equity investment representing ownership in a corporation; each share represents a fractional ownership interest in the firm.

 

Contract Note:  A note which must accompany every security transaction which contains information such as the dealer’s name (whether he is acting as principal or agent) and the date of contract.

Controlling Shareholder: Any person who is, or group of persons who together are, entitled to exercise or control the exercise of a certain amount of shares in a company at a level (which differs by jurisdiction) that triggers a mandatory general offer, or more of the voting power at general meetings of the issuer, or who is or are in a position to control the composition of a majority of the board of directors of the issuer.

Coupon Rate: The annual rate of interest on the bond’s face value that a bond’s issuer promises to pay the bondholder. It is the bond’s interest payment per dollar of par value.

Covered Warrants:  Derivative call warrants on shares which have been separately deposited by the issuer so that they are available for delivery upon exercise.

Consumer Credit Counseling Service:A service which specializes in working with consumers who are overextended with debts and need to make arrangements with creditors.

Consumer Reporting Agency:An agency that regularly collects or evaluates individual consumer credit information or other information about consumers and sells consumer reports for a fee to creditors or others. Typical clients include banks, mortgage lenders, credit card companies, and other financing companies.

Conventional Fixed Rate Mortgage:A fixed-rate mortgage offers you a set interest rate and payments that do not change throughout the life, or "term," of the loan.A conventional fixed-rate loan is fully paid off over a given number of years-usually 15, 20, or 30. A portion of each monthly payment goes towards paying back the money borrowed, the "principal"; the rest is "interest."

Co-Signer:An individual who signs the note of another person as support for the credit of the primary signer and who becomes responsible for the obligation. (Also known as a Co-maker.)

Credit Application:A form to be completed by an applicant for a credit account, giving sufficient details (residence, employment, income, and existing debt) to allow the seller to establish the applicant's creditworthiness. Sometimes, an application fee is charged to cover the cost of loan processing.

Credit Bureau:An agency that collects individual credit information and sells it for a fee to creditors so they can make a decision on granting loans. Typical clients include banks, mortgage lenders, credit card companies, and other financing companies. Also commonly referred to as a consumer reporting agency or a credit reporting agency.

Credit Card Issuer:Any financial institution that issues bank cards to those who apply for them.

Credit Disability Insurance:A type of insurance, also known as accident and health insurance, that makes payments on the loan if you become ill or injured and cannot work.

Credit Life Insurance:A type of life insurance that helps repay a loan if you should die before the loan is fully repaid. This is optional coverage.

Credit Limit:The maximum amount of credit that is available on a credit card or other line of credit account.

Credit Repair Organization:A person or organization that sells, provides, performs, or assists in improving a consumer's credit record, credit history or credit rating (or says that that they will do so) in exchange for a fee or other payment. It also includes a person or organization that provides advice or assistance about how to improve a consumer's credit record, credit history or credit rating. There are some important exceptions to this definition, including many non-profit organizations and the creditor that is owed the debt.
Credit Rating: An assessment of the likelihood of an individual or business being able to meet its financial obligations. Credit ratings are provided by credit agencies or rating agencies to verify the financial strength of the issuer for investors.

Credit Report:A detailed report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness.

Credit Score:A number, roughly between 300 and 800, that measures an individual's credit worthiness. The most well-known type of credit score is the FICO® score. This score represents the answer from a mathematical formula that assigns numerical values to various pieces of information in your credit report.Banks use a credit score to help determine whether you qualify for a particular credit card, loan, or service.

Crossing of Cheques: Crossing refers to drawing two parallel lines across the face of the cheque. A crossed cheque cannot be paid in cash across the counter, and is to be paid through a bank either by transfer, collection or clearing.

Current Account: Current account with a bank can be opened generally for business purpose. There are no restrictions on withdrawals in this type of account. No interest is paid in this type of account.

 

Currency Board: A monetary system in which the monetary base is fully backed by foreign reserves. Any changes in the size of the monetary base have to be fully matched by corresponding changes in the foreign reserves.

 

Current Yield: A return measure that indicates the amount of current income a bond provides relative to its market price. It is shown as: Coupon Rate divided by Price multiplied by 100%.

 

Custody of Securities: Registration of securities in the name of the person to whom a bank is accountable, or in the name of the bank’s nominee; plus deposition of securities in a designated account with the bank’s bankers or with any other institution providing custodial services.

Cut-Off Time: A time of day established by a bank for receipt of deposits. After the cut-off time, deposits are considered received on the next banking day.