Front page Topics Glossary Of Financial Terms

To develop common sense about personal finance and money you need information

Below, you'll find a guide on basic financial terms you should know to help you on your way to success.

Financial terms

Abstract - A summary.

Abstract of title - The summary of the existing public records related to a particular piece of land, including a brief history of all transfers, conveyances, grants, and judicial proceedings, encumbrances and liens.

An attorney or title insurance company officer prepares the abstract of title by examining all recorded documents –also known as instruments- pertaining to the property in question. The number of years an abstract of title should cover to present a clear title is regulated, though sometimes the property can be traced back to the initial grant.

The term for an addition or amendment to a policy like this one is rider.

Accelerated benefit – It is an addition to a policy that allows a terminally ill person to cash in up to 95% of the face value before passing away.

Acceleration clause – A provision in a contract for which the entire amount or some specified collateral is due at once when some event occurs. In a loan agreement, an acceleration clause would allow the lender to require the balance of the loan to become due immediately if mortgage payments are not made, the property was sold or there was a breach of contract.

Face value – Benefit amount stated in a document.

Rider – An addition or amendment to a document, like an insurance policy, a testament, or an additional clause attached to a legislative bill.

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