A community for which the Federal Emergency Management Agency (FEMA) has authorized the sale of flood insurance under the National Flood Insurance Program (NFIP).
Passbook:
A book in ledger form in which are recorded all deposits, withdrawals, and earnings of a customer's savings account.
Past Due Item :
Any note or other time instrument of indebtedness that has not been paid on the due date.
Payday Loans:
A small-dollar, short-term loan that a borrower promises to repay out of their next paycheck or deposit of funds.
Payee:
The person or organization to whom a check, draft, or note is made payable.
Paying (Payor) Bank :
A bank upon which a check is drawn and that pays a check or other draft.
Payment Due Date:
The date on which a loan or installment payment is due. It is set by a financial institution. Any payment received after this date is considered late; fees and penalties can be assessed.
Payoff:
The complete repayment of a loan, including principal, interest, and any other amounts due. Payoff occurs either over the full term of the loan or through prepayments.
Payoff Statement:
A formal statement prepared when a loan payoff is contemplated. It shows the current status of the loan account, all sums due, and the daily rate of interest.
Payor:
The person or organization who pays.
Periodic Rate:
The interest rate described in relation to a specific amount of time. The monthly periodic rate, for example, is the cost of credit per month; the daily periodic rate is the cost of credit per day.
Periodic Statement:
The billing summary produced and mailed at specified intervals, usually monthly.
Personal Identification Number (PIN):
Generally a four-character number or word, the PIN is the secret code given to credit or debit cardholders enabling them to access their accounts. The code is either randomly assigned by the bank or selected by the customer. It is intended to prevent unauthorized use of the card while accessing a financial service terminal.
PITI:
Common acronym for principal, interest, taxes, and insurance—used when describing the monthly charges on a mortgage.
Point of Sale (POS):
1) The location at which a transaction takes place. 2) Systems that allow bank customers to effect transfers of funds from their deposit accounts and other financial transactions at retail establishments.
Power of Attorney:
A written instrument which authorizes one person to act as another's agent or attorney. The power of attorney may be for a definite, specific act, or it may be general in nature. The terms of the written power of attorney may specify when it will expire. If not, the power of attorney usually expires when the person granting it dies.
Some institutions require that you use the bank's power of attorney forms. (The bank may refer to this as a Durable Power of Attorney: The principal grants specific rights to the agent.)
Preauthorized Electronic Fund Transfers:
An EFT authorized in advance to recur at substantially regular intervals.
Preauthorized Payment:
A system established by a written agreement under which a financial institution is authorized by the customer to debit the customer's account in order to pay bills or make loan payments.
Preferred Risk Policy (PRP):
A policy that offers fixed combinations of building/contents coverage or contents-only coverage at modest, fixed premiums. The PRP generally is available for property located in B, C, and X Zones in Regular Program Communities that meets eligibility requirements based on the property’s flood loss history.
Prepayment:
The payment of a debt before it actually becomes due.
Prepayment Clause:
A clause in a mortgage allowing the mortgagor to pay off part or all of the unpaid debt before it becomes due.
Prepayment Penalty:
A penalty imposed on a borrower for repaying the loan before its due date. (In the case of a mortgage, this applies when there is not a prepayment clause in the mortgage note to offset the penalty.)
Previous Balance:
The cardholder's account balance as of the previous billing statement.
Principal Balance:
The outstanding balance on a loan, excluding interest and fees.
Private Mortgage Insurance (PMI):
Insurance offered by a private insurance company that protects the bank against loss on a defaulted mortgage up to the limit of the policy (usually 20 to 25 percent of the loan amount). PMI is usually limited to loans with a high loan-to-value (LTV) ratio. The borrower pays the premium.
