Related Words

Amortize: Payoff off a debt in installments which includes both principal and interest.

Unamortized Premiums On Investments: Par value of a bond less the proceeds received from the sale of the bond, less whatever portion has been amortized.

Fully Amortized: Fully amortized mortgages are paid in equal monthly installments, which include interest and amortization of principal, paid over a period of years. The interest is set at a predetermined ra . . . View Full Definition

Unamortized Bond Discount: A liability insurance policy that provides protection against damages not covered by standard liability policies, such as large jury awards in lawsuits.

Certificates Of Amortized Revolving Debt (CARD): Municipal bonds with one certificate which is valid for the entire issue, and having no individual certificates, easing transactions. See: Book-entry securities.

Intangible Asset: Defined benefit pension plans that are guaranteed by life insurance products. Related: Non-insured plans

Regulatory Accounting Procedures (RAP): Accounting principles required by the FHLB that allow S&Ls to elect annually to defer gains and losses on the sale of assets and amortize these deferrals over the average life of the asset sold.

Bond Carrying Value: The face value of bonds minus the unamortized discount or plus the unamortized premium.

Graham And Dodd Method Of Investing: A type of stepped-payment loan in which the borrower's payments are initially lower than those on a comparable level-rate mortgage. The payments gradually increase over a predetermined perio . . . View Full Definition

Captive Finance Company: Interest that is not immediately expensed, but rather is considered as an asset and is then amortized through the income statement over time.