• Banking Terms – U



    UCF UCF stands for uncollected funds. Check, money orders, drafts or other financial instruments that is not released by the issuing bank. If the deposited check belongs to the same bank then the clearing period is less whereas if the deposited check belongs to other bank then the clearing period is more. When the deposited check belongs to the same bank then the uncollected funds is deposited to the deposit account and the payers account is debited immediately. In case of deposit check belonging to other bank the clearing period is longer.
    Umbrella Fund An umbrella fund – sometimes known as a fund of funds – is an investment fund that invests in other funds rather than in direct investments. It an investment term used to describe a collective investment scheme which is a single legal entity but has several distinct sub-funds which in effect are traded as individual investment funds.
    Unadvised Line A line of credit which is sanctioned by the bank but not revealed to the borrower till the time of some particular occasion.
    Uncertificated This is a legal word that is utilized as an adjective to depict stocks, bonds, miscellaneous investments and deposit certificates, which are held in immaterial form as electronic computer records.
    Underlying Security  The security subject to being purchased or sold upon exercise of the option contract.
    Underwriter Any investment or commercial financial firm or a securities house that works with an issuing entity for the purpose of selling a new issue.
    Underwriting It is an agreement by the underwriter to buy on a fixed date and at a fixed rate, the unsubscribed portion of shares or debentures or other issues. Underwriter gets commission for this agreement.
    Underwriting contract It is a contract between the issuer of securities and an Underwriter, who is a company or any other entity that administers the issuance and distribution of the securities of the company to the general public. The underwriter decides the offering price of the securities then buys them from issuer and then sells them to investors. Based on the total amount of risk the undertaker is ready to take, the undertaking contract is mainly of 3 types – Firm Commitment Contract, Best Efforts Contract, All-or-none Contract.
    Undischarged Debts When the Bankruptcy Court does not release the debtor for certain debts, those are known as undischarged debts.
    Uniform Commercial Code  This is comprehensive codification and modernization of commercial law offered to various states with the objective of achieving greater uniformity in commercial laws.
    Universal Banking When Banks and Financial Institutions are allowed to undertake all types of activities related to banking is called Universal Banking.
    Universal Life Insurance A type of life insurance which blends term insurance protection with a savings element.
    Unsecured debt A credit source which is not guaranteed with collateral.
    Unsecured Loans These are loans, which are not backed by any physical security. E.g. student loans disbursed to enable students to meet course fees and other related expenses.


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