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Definition of Term loan
A bank loan, typically with a floating interest rate, for a specified amount that matures in between
A secured loan made to business concerns for a specific period (normally three to ten years). It is repaid with interest, usually with periodical payments.
A short term loan to cover the immediate cash requirements until permanent financing is received.
A bank term loan that calls for no amortization.
Intermediate-term loans of Eurocurrencies made by banking syndicates to corporate and
A secured short-term loan to purchase inventory. The three basic forms are a blanket
An agreement with a commitment by the seller (dealer) to buy a security back from
Most term loans in the Euromarket are made on a rollover basis, which means that the loan is
The International Bank for Reconstruction and Development, an international organization that provides long-term loans to developing countries to improve their infrastructure.
A loan in which two companies in separate countries borrow each other's currency for a
Related: Call money rate.
A mortgage loan on newly developed property that the builder subsidizes during the
A measure of the goodness of fit of the relationship between the dependent and
a measure of dispersion that
An agreement between a creditor and a borrower, where the creditor has loaned an amount to the borrower for business purposes.
Conditions under which credit is extended by a lender to a borrower.
Overnight, collateralized loan made to a dealer financing his position by borrowing from a
A loan which must be repaid in full on demand.
Liability-matching models that assume that the liability payments and the asset cash
Withdrawal of funds from a financial institution in order to invest them directly.
Given the after-tax stream associated with a lease, the maximum amount of conventional
Euro-medium term note (Euro-MTN)
A non-underwritten Euronote issued directly to the market. Euro-
Farm Improvement and Marketing Cooperatives Loans Act
Federal Home Loan Banks
The institutions that regulate and lend to savings and loan associations. The
Institutions that provide the market function of matching borrowers and lenders or
Firm that raises money from many small investors and provides financing to businesses or other
Any institution, such as a bank, that takes deposits from savers and loans them to borrowers.
The process whereby financial intermediaries channel funds from lender/savers to borrower/spenders.
A loan on which the rate paid by the borrower is fixed for the life of the loan.
Fixed Rate Loan
loan for a fixed period of time with a fixed interest rate for the life of the loan.
Optional periods of time which the conditions of a contract will be carried out.
Freddie Mac (Federal Home Loan Mortgage Corporation)
A Congressionally chartered corporation that
loan made by one unit of a corporation to another unit of the same corporation.
spread The spread between the interest rate offered in two sectors of the bond market for
Intermarket spread swaps
An exchange of one bond for another based on the manager's projection of a
An independent third party that may act as a mediator during negotiations.
A good used in producing another good.
Typically 1-10 years.
Investment through a financial institution. Related: disintermediation.
loans of $1 billion or more. Or, loans that exceed the statutory size limit eligible for purchase or
Liquidity theory of the term structure
A biased expectations theory that asserts that the implied forward
Loan amortization schedule
The schedule for repaying the interest and principal on a loan.
Borrowed funds having a fixed interest rate.
Express stipulations included in loan agreements that are designed to monitor
Group of banks sharing a loan. See: syndicate.
The amount a policyholder may borrow against a whole life insurance policy at the interest rate
Amounts that have been loaned to the company and that it still owes.
In accounting information, one year or greater.
Value of property, equipment and other capital assets minus the depreciation. This is an
An obligation having a maturity of more than one year from the date it was issued. Also
A debt for which payments will be required for a period of more than
Long Term Debt
Liability due in a year or more.
Indicator of financial leverage. Shows long-term debt as a proportion of the
Long-term debt ratio
The ratio of long-term debt to total capitalization.
Long-term debt to equity ratio
A capitalization ratio comparing long-term debt to shareholders' equity.
Long-term financial plan
Financial plan covering two or more years of future operations.
Amount owed for leases, bond repayment and other items due after 1 year.
Bills that are payable in more than one year, such as a mortgage or bonds.
Amounts owing after more than one year.
Longer-Term Fixed Assets
Assets having a useful life greater than one year but the duration of the 'long term' will vary with the context in which the term is applied.
A corporate debt instrument that is continuously offered to investors over a period of
Give the borrower the possibility of drawing a loan in different currencies.
loans usually represented by conventional mortgages on multi-family rental apartments.
Negative Loan Covenants
loan covenants designed to limit a corporate borrower's behavior
A loan advanced under an operating line of credit.
Other long term liabilities
Value of leases, future employee benefits, deferred taxes and other obligations
A process whereby two companies in different countries borrow each other's currency for a
A lump sum that you borrow from a financial institution for a specified period of time. To repay the loan, you pay interest on the entire lump sum, and make payments on a scheduled basis.
Positive Loan Covenants
loan covenants expressing minimum and maximum financial measures
predetermined overhead rate
an estimated constant charge per unit of activity used to assign overhead cost to production or services of the period; it is calculated by dividing total budgeted annual overhead at a selected level of volume or activity by that selected measure of volume or activity; it is also the standard overhead application rate
Project loan certificate (PLC)
A primary program of Ginnie Mae for securitizing FHA-insured and coinsured
Project loan securities
Securities backed by a variety of FHA-insured loan types - primarily multi-family
Usually FHA-insured and HUD-guaranteed mortgages on multiple-family housing complexes,
The length of time given a borrower by a lender to repay a debt and the frequency of principal payments which the borrower has to meet.
Savings and Loan association
National- or state-chartered institution that accepts savings deposits and
secured loan or line of credit
A lump sum of funds (loan), or a revolving source of credit with a pre-established limit (line of credit), for which the customer must provide collateral.
loan to finance current assets, The sale of the current assets provides the cash to repay
Short-term financial plan
A financial plan that covers the coming fiscal year.
Short-term investment services
Services that assist firms in making short-term investments.
Short-term solvency ratios
Ratios used to judge the adequacy of liquid assets for meeting short-term
Short-term tax exempts
Short-term securities issued by states, municipalities, local housing agencies, and
See term to maturity.
This is usually the duration of a loan.
The period of time during which a financial contract – such as a GIC or a loan – is in force.
The time period during which a policy is in force, or the time it takes for a policy to reach maturity.
Often referred to as bullet-maturity bonds or simply bullet bonds, bonds whose principal is
An interest-earning bank deposit that cannot be withdrawn without penalty until a specific time.
Term Fed Funds
Fed Funds sold for a period of time longer than overnight.
Provides a death benefit only, no build-up of cash value.
A product that provides life coverage for a specified duration typically not beyond the age of 75.
Term life insurance
A contract that provides a death benefit but no cash build-up or investment component.
Term Life Insurance
A plan of insurance which covers the insured for only a certain period of time and not necessarily for his or her entire life. The policy pays a death benefit only if the insured dies during the term.
Excess of the yields to maturity on long-term bonds over those of short-term bonds.
A repurchase agreement with a term of more than one day.
A list of the major points of the proposed financing being offered by an investor.
The relationship between the yields on fixed-interest
Term Structure of Interest Rates
Relationship among interest rates on bonds with different terms to maturity.
Term to maturity
The time remaining on a bond's life, or the date on which the debt will cease to exist and
Term to Maturity
Period of time from the present to the redemption date of a bond.
A closed-end fund that has a fixed termination or maturity date.
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