Late Charge:
The
fee charged for delinquent payment on an installment loan, usually
expressed as a percentage of the loan balance or payment. Also, a
penalty imposed by a card issuer against a cardholder's account for
failing to make minimum payments.
Lease:
A contract
transferring the use of property or occupancy of land, space,
structures, or equipment in consideration of a payment (e.g., rent).
Lender:
An individual or financial institution that lends money with the expectation that the money will be returned with interest.
Lien:
Legal claim against a property. Once the property is sold, the lien holder is then paid the amount that is owed.
Line of Credit:
A
pre-approved loan authorization with a specific borrowing limit based
on creditworthiness. A line of credit allows borrowers to obtain a
number of loans without re-applying each time as long as the total of
borrowed funds does not exceed the credit limit.
Loan-to-Value Ratio (LTV):
The
ratio of the loan principal (amount borrowed) to the appraised value
(selling price). For example, on a $100,000 home, with a mortgage loan
principal of $80,000, the loan-to-value ratio is 80 percent. The LTV
will affect programs available to the borrower; generally, the lower the
LTV, the more favorable the program terms offered by lenders.
Loan Contract:
The written agreement between a borrower and a lender in which the terms and conditions of the loan are set.
Loan Fee:
A fee charged by a lender to make a loan (in addition to the interest charged to the borrower).
Loan Modification Provision:
A
contractual agreement in a loan that allows the borrower or lender to
permanently change one or more of the terms of the original contract.
Loan Proceeds:
The net amount of funds that a lending institution disburses under the terms of a loan, and which the borrower then owes.
Local Check:
A
check payable by, at, or through a bank in the same check processing
region as the location of the branch of the depository bank. The
depository bank is the bank into which the check was deposited. As of
February 27, 2010, the Federal Reserve consolidated its checking
processing centers into one processing center. Therefore, all checks are
now considered local.
