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8 Cards in this Set
- Front
- Back
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Collateral - |
Collateral - Marketable real or personal property which a borrower pledges as security for a loan. In mortgage transactions, specific land is the collateral. |
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Leverage |
Leverage - The use of debt financing of an investment to maximize the return per dollar of equity invested. |
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Legal Title – |
Legal Title – The actual ownership of property. |
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Hypothecate – |
Hypothecate – The right to obtain full ownership of property. |
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Hypothecate – |
Hypothecate – To pledge a thing as security without the necessity of giving up possession of it. |
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Foreclosure |
– Procedure whereby property pledged for a debt is sold to pay the debt in event of default in payments or terms. |
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Default |
Failure to fulfill a duty or promise or to discharge an obligation; omission or failure to perform any act. |
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Promissory Note – |
Following a loan commitment from the lender, the borrower signs a note, promising to repay the loan under stipulated terms. The promissory note establishes personal liability for its payment. The evidence of the debt. |
