Glossary Of Banking Terms And Phrases
Banks' legal right to seize funds that a guarantor or debtor may have on deposit to cover a loan in default. A form of extending an unpaid loan in which the borrower's remaining unpaid loan balance is carried over into a new loan at the beginning of the next financing period. An amount paid back because of an overpayment or because of the return of an item previously sold. Insurance Hazard Funds held in reserve by a mortgage company to pay taxes, insurance , and other mortgage-related items when due. A financial instrument held by a third party on behalf of the other two parties in a transaction. The funds are held by the escrow service until it receives the appropriate written or oral instructions-or until obligations have been fulfilled. Securities, funds, and other assets can be held in escrow. A regulatory tool that the OCC may use to correct problems or effect change in a national bank. See related questions about Bank Errors & Disputes and Credit Card Disputes. A