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GLOSSARY
Collection agency
A collection agency is an entity that's in the business of collecting delinquent accounts on behalf of lenders, businesses, or individuals.
Collection float
Collection float refers to the time between when a check is deposited, and when the associated funds are available for withdrawal. In investing, collection float refers to the quantity of shares outstanding and available for public trading.
Collusion
Collusion is a secret plan, devised and agreed on by two or more people, to commit fraud.
Comaker
A comaker, also called a cosigner, is one who assumes full responsibility for a debt if the borrower does not or cannot repay the obligation as promised. Comakers document their acceptance of this responsibility by signing the promissory note.
Combination loan
A combination loan is an arrangement between a lender and borrower to make two separate, but related, loans. As an example, if a property owner wishes to build a home, she could negotiate a construction loan and mortgage loan simultaneously. The construction loan covers the construction costs only; once the home is built, the mortgage loan is funded and used to pay off the construction loan. Another example is the arrangement of two loans for a home purchase; one loan funds the down payment, and a second loan funds the remaining purchase price of the home.
Combined loan-to-value ratio
Combined loan-to-value ratio, or CLTV, is a borrower's total mortgage debt outstanding divided by the value of the mortgaged property. Total mortgage debt outstanding includes unpaid balances under first and second mortgages. CLTV is expressed as a percentage.
Combined loan-to-value ratio - CLTV ratio
CLTV, or combined loan-to-value ratio, is a borrower's total mortgage debt outstanding divided by the value of the mortgaged property. Total mortgage debt outstanding includes unpaid balances under first and second mortgages. CLTV is expressed as a percentage.
Commercial bank
A commercial bank is an institution that provides financial services such as deposit accounts, credit cards, loans, and lines of credit. The term might be used to differentiate a traditional bank from an investment bank. It can also be used to describe a banking institution that mainly serves businesses.
Commercial credit
Commercial credit is an approved debt facility that allows a business to borrow funds and repay them at a later date.
Commercial finance
Commercial finance is the practice of making and servicing loans to businesses. Such loans may or may not be secured by certain business assets.
Commercial lending
Commercial lending is the practice of making and servicing loans to businesses. Such loans may or may not be secured by certain business assets.
Commercial loan
A commercial loan is an extension of debt provided by a financial institution to a business. The term generally implies a long-term debt, most commonly used for business start-up, expansion, or recapitalization. Other types of commercial debt available include lines of credit, revolving credit facilities, commercial mortgage loans, and commercial bridge financing.
Commercial mortgage
A commercial mortgage is a loan secured by real estate that's used for business purposes.
Commercial mortgage-backed securities - CMBS
Commercial mortgage-backed securities, or CMBS, are bonds that are sold in shares to investors. These bonds are repaid by an underlying pool of commercial mortgages, which provide high rates of return and have low prepayment risk.
Commercial paper
Commercial paper is a short-term, unsecured debt issued by large businesses with good credit ratings. Unlike long-term debt issues, commercial paper maturing in 270 days or less doesn't have to be registered with the Securities and Exchange Commission. Businesses use commercial paper to provide short-term liquidity to support regular fluctuations in accounts receivable and inventory. From an investor's perspective, commercial paper is considered relatively low risk.