• Banking Terms – T



    Tax Liens This refers to any claim by taxation authorities such as IRS on the income or other funds of the Borrower.
    Technical Analysis A method of evaluating securities by relying on the assumption that market data, such as charts of price, volume, and open interest, can help predict future (usually short-term) market trends. Contrasted with fundamental analysis which involves the study of financial accounts and other information about the company.
    Teller Teller is a staff member of a bank who accepts deposits, cashes cheques and performs other banking services for the public.
    Term Insurance It is the insurance for a certain time period which provides for no defrayal to the insured individual, excluding losses during the period, and that becomes null upon its expiration.
    Term Loan A loan which has specific repayment schedule and floating interest rate.
    Term Structure of Interest Rates This phrase relates to the relationship between interest rates on bonds of different due dates, generally described in the form of a chart, often known as a ‘yield curve’.
    Terms The agreement between the creditor and the debtor.
    Terms of Credit It refers to various factors such as interest rate, amount and repayment program etc. for a loan.
    The Cash and Carry Arbitrage This is the easiest form of arbitrage, where the investor has to buy the commodity in the spot market and sell it in the futures market. This is largely successful in gold and silver and is also popular among various agricultural commodities.
    Thrift Prudence in spending the money.
    Thrift Institution It is the general term for savings banks, savings and loan associations, and credit unions.
    Tier 1 Capital Refers to core capital consisting of Capital, Statutory Reserves, Revenue and other reserves, Capital Reserves (excluding Revaluation Reserves) and unallocated surplus/ profit but excluding accumulated losses, investments in subsidiaries and other intangible assets
    Tier 2 Capital Comprises Property Revaluation Reserves, Undisclosed Reserves, Hybrid Capital, Subordinated Term Debt and General Provisions. This is Supplementary Capital.
    Time Deposit A Time Deposit is a money deposit at a banking institution that cannot be withdrawn for a certain “term” or period of time. When the term is over it can be withdrawn or it can be held for another term. Generally speaking, the longer the term the better the yield on the money. A certificate of deposit is a time-deposit product
    Time draft A draft which can be paid in a future date.
    Time Note A ‘time note’ is a financial instrument, like a ‘note of hand’, which stipulates dates or a date of defrayal.
    Time Value This is the sum of money that an option’s premium surpasses its intrinsic worth, and is also called as ‘time premium’.
    Title A legal document establishing evidence of ownership.
    Title Deeds This refers to the various documents such as purchase agreement and document of title to property, which enables the lender to check upon the ownership of property offered as security by the borrower.
    Title Insurance Insurance that protects the lender against any claims that arise from arguments about ownership of the property; also available for homebuyers.
    Title Insurance Policy Every lender in any state will require title insurance. Generally the company issuing the title insurance policy researches legal records to make sure that the home loan borrower receives a clear title, or ownership, to the property.
    Title Search The process of examining all relevant records to confirm that the seller is the legal owner of a property and that there are no liens or other claims outstanding.
    Total Return The change in the value of an investment over a given period, assuming reinvestment of dividends and including capital gains, whether realized or not. It is the return on an investment, including income from dividends and interest, as well as appreciation or depreciation in the price of the security, over a given time period, usually a year.
    Total Return Analysis This term relates to the analysis of the real rate of return that is earned over a certain evaluation time period.
    Total Return Swap It is a kind of switch wherein an entity pays another entity according to the fixed rate in return for defrayals based on the return of a given asset.
    Trade Credit It is the credit which a company gives to another organization for the purpose of buying products or services.
    Trade Gap It signifies the size of the deficit (or surplus) in the balance of trade i.e., the difference in value between visible imports and exports.
    Transfer Customer’s changing the ownership.
    Transfer Payment It is a payment made by public authority other than one made in exchange for goods or services produced. Transfer payments are not the part of National Income. Examples include unemployment benefit and child benefits.
    Traveler’s check Allowing a person to make unconditional payment.
    Treasury Bill (T-bill) A short-term debt obligation backed by the U.S. government with a maturity of less than one year. T-bills are sold in denominations of $1,000 up to a maximum purchase of $5 million and commonly have maturities of one month (four weeks), three months (13 weeks) or six months (26 weeks).T-bills are issued through a competitive bidding process at a discount from par, which means that rather than paying fixed interest payments like conventional bonds, the appreciation of the bond provides the return to the holder.
    Treasury Bond Treasury bonds (T-Bonds, or the long bond) are the debt security of the US government with a maturity of ten years or more.. They have coupon payment every six months and are commonly issued with maturity of thirty years. The secondary market is highly liquid, so the yield on the most recent T-Bond offering was commonly used as a proxy for long-term interest rates in general.
    Trust Deed  A formal document that creates a trust. It states the purpose and terms of the name of the trustees and beneficiaries.
    Truth in Lending Act The Truth in Lending Act is to ensure that credit terms are communicated to consumers in a meaningful way. All creditors must use the same credit terminology and expressions of rates.


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