Glossary Index | Categories | Tagged Terms

Terms with Category Financial Banking

Inventory -
Leasehold

Low-down-payment Loan -
Money Laundering

Letter of Credit (L/C) — Acronym,
- A letter authorizing a person or company to draw on a bank or stating that the bank will honour the credit up to the stated amount.
Level Payment — Definition,
- A method of repayment where periodical payments of principal and interest are made in a certain way so the payment amount remains constant.
Leverage — Definition,
- The use of a small amount of cash and a large loan to buy something.
Leveraged Property — Definition,
- A property financed with mortgage debt.
Levy — Definition,
- A cost imposed on an individual or entity.
Liabilities — Definition,
- A borrower's debts and legal obligations.
Liability Insurance — Definition,
- Insurance that provides coverage for damages caused by an individual or entity's negligence or legal responsibilities.
Line of Credit (LOC) — Acronym,
- A commitment by a financial institution to lend up to a specified maximum amount to a customer during a specified period of time.
Liquid Assets — Definition,
- Cash and other property that can be converted quickly and easily into cash.
Liquidation — Definition,
- The practice of selling or redistributing some or all of a business's assets in order to repay debts or pay investors if the business becomes insolvent or is sold in full or in part.
- To convert into cash.
- To settle the outstanding debts by selling property.
Liquidity — Definition,
- The ability to convert assets to cash quickly, without significant losses.
Lloyd's of London — Company,
- A market for insurance and reinsurance based in London, England where Lloyd's members, underwriters and financial backers can spread and share risk.
Lloyd's Syndicates — Definition,
- A group of Lloyd's of London underwriters.
Loan — Definition,
- Letting another party use something of value temporarily.
Loan Application — Definition,
- A document in which a prospective borrower details his or her financial situation to qualify for a loan.
Loan Application Fee — Definition,
- A cost charged by a lender for processing loan application documents that are submitted by prospective borrowers.
Loan Commitment — Definition,
- A lender's promise to advance a specific sum on specific terms.
Loan Origination — Definition,
- The process of applying for a loan and the handling of that application by a lender.
Loan Processing — Definition,
- The steps taken by a lender to convert a loan application into an approved loan for the potential borrower. These steps include processing the application, conducting a credit investigation, evaluating the loan, etc.
Loan Servicing — Definition,
- Supervising a loan after it has been made. This could involve collecting payments, keeping accounting records, computing interest and principal, etc.
Loan Shark — Definition,
- A lender that provides loans at usuriously high interest rates, often ensuring repayment with the threat of force.
Loan Term — Definition,
- The period specified in the promissory note for a borrower to pay a loan, such as a mortgage. Most conventional mortgages have a loan term of 5 or 10 years.
Loan-to-Value (LTV) — Acronym, Very Important,
- The ratio of the principal amount of the loan to the lesser of the purchase price of the property or the property's appraised value. This can be expressed as an 80% loan, or 80% LTV.
➥ A widely used term in the mortgage brokerage and lending industry, especially by mortgage underwriters.
Local Taxes — Definition,
- Taxes imposed by local governments (municipalities) to pay for its services. These taxes are in addition to Federal and Provincial taxation.
Lock-in — Definition,
- A lender's guarantee that the mortgage rate quoted will not change for a specific period. The borrower wants the lock to stay in effect until closing.
Long Term Capital Gain (LTCG) — Acronym,
- Your loss from the sale of a capital asset that you held for more than 12 months.
Long-term Capital Loss — Definition,
- Your profit from the sale of a capital asset that you held for more than 12 months.
Long-term Liabilities — Definition,
- Money owed over a period longer than 12 months, such as mortgages, bank loans, and other obligations.
Loss — Definition,
- When expenses are larger than revenues.
Low-documentation Loan — Definition,
- A mortgage that requires less income or asset verification than conventional loans. Low-documentation loans are designed for the entrepreneur or self-employed, for recent immigrants, or for borrowers who cannot or choose not to reveal their financial information. A substantial down payment and excellent credit history are generally required. This type of loan will also yield a higher interest rate.