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Glossary of Financial Terms

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A/B Trust: Common term for a marital trust. Generally used as an estate tax savings vehicle for couples whose assets are valued above the federal estate tax exclusion amount.

Abstract of Title: A summary or condensation of the essential parts of all recorded instruments that affect a particular piece of property, usually arranged in the order in which they were recorded.

Account Closing Fee: A fee incurred by a borrower if the line is closed within the first three years from origination. The fee is included in the payoff amount quoted.

Account Nickname: A name you give an account to make it easier for you to identify in AccountLink Online Banking.

Acknowledgment: A declaration made by a person or corporation to a Notary Public, or other public official authorized to take acknowledgments, that the instrument was executed by that person or by a person having the authority to execute on behalf of the corporation, and that it is his free and voluntary act.

Accrued Interest: The amount of interest earned to-date on your CD. You do not have access to your accrued interest until maturity.

Administration of Estate: The management of an estate, including collection of estate assets, distribution of assets to appropriate parties (creditors and beneficiaries) and the complete accounting of an estate.

Administrator: Individual appointed by the court to manage the estate of a person who dies without a will.

Adverse Possession: Possession by one who does not have title, claiming against one who does.

Annual Fee: The amount we may charge you to have a credit card account with us. The fee is assessed once per calendar year. The amount of your annual fee varies based on the type of credit card account you have with us. The annual fee is charged to your credit card account just like any other vendor charge, and appears on your statement in the same billing cycle during which the fee was charged.

Annual Gift Tax Exclusion: Individuals are allowed to give up to $12,000 each year (married couples can give up to $24,000) to as many recipients as they choose.

Annual Percentage Rate (APR): The cost of the credit expressed as a yearly rate. It is based on the "finance charge" (which is the dollar cost of the credit) and expresses the dollar cost in terms of percentage cost on an annual basis. The APR is often higher than the interest rate because it is based on the "finance charge" which includes various charges for the loan as well as the interest that will accrue at the contract rate.

Annual Percentage Yield (APY): A rate that reflects the total amount of interest paid on an account, based on the interest rate and the frequency of compounding for a 365-day period.

Annuity: A contract between an individual and an insurance company, where the individual gives the insurance company money, in exchange for a stream of income paid over a predetermined period of time. Earnings are tax deferred.

Appraisal: A determination of property value based on recent, verifiable information of sales (and rentals) in the vicinity of the home. Value estimate is prepared based on legally permissible use at the time.

Appraised Value of Undeveloped Acreage: The land value assigned to undeveloped or wildcat acreage is based on the economic and geological potential of the lands.

Assignee: The party to whom an interest in property has been assigned or transferred.

Assignment: A transfer to another of rights, interest or claim in or to real or personal property.

Assignor: The party who assigns or transfers an interest in property to another.

Attorney's Opinion (Title Opinion): The written opinion of an Attorney at Law regarding the marketability of title to real property, usually based upon an examination of an abstract title.

Authorized User: A trusted friend or family member to whom you grant access to your credit card account.

Automatic Session Logout: A process by which we terminate your secure session after 10 minutes of inactivity.

Available Balance: The amount available in your account that you can use right now.

Available Credit: The total amount of credit remaining on your credit card account. It is the amount you may charge or transfer to that account. Your available credit equals your total credit limit minus your outstanding balance. For example, if you have a $5,000 credit limit, and your balance is $3,000, your available credit is $2,000.

Available Credit Line: The amount of money you can borrow. Your credit line, which is determined during the application approval process, is based on the equity in your home.

Average Daily Balance: The balance you carried on your credit card account during the billing cycle, averaged by the number of days in the cycle. We calculate the average daily balance by adding the balance at the end of each day, then dividing the total by the number of days in the billing cycle. This is the amount used to calculate finance charges.