APPLY
NOW / LOGIN
GLOSSARY
Nontaxable distribution
A nontaxable distribution is a payment made by a company to its shareholders; this payment is not treated as income or as a regular dividend. Instead, the payment is accounted for by the shareholder as a reduction in cost basis. The tax effect of the distribution will then be realized when the share is sold.
Normal yield curve
A normal yield curve is an interest rate environment where long-term debt instruments (such as bonds) exhibit higher returns than similar short-term debt instruments. A normal yield curve is also called a positive yield curve.
Note
A legal document stating the obligation of the borrower to repay the stated sum of money at a specified interest rate at a specified date or on demand.
Note loan
A note loan is a debt facility that's not supported by collateral.
Note rate
A percentage that a borrower pays for the use of the money. Also expressed as the annual percentage rate as disclosed in the terms of the loan.
Notice of assessment - NOA
Notice of assessment, or NOA, is a yearly tax statement sent by a taxing authority to taxpayers. U.S. property owners receive notices of assessment for property taxes owed. Other taxing authorities, such as the Australian Taxation Office and Canada Revenue Agency, send notices of assessment for income taxes.
Notice of default
A documentation that is made public that states that the borrower is in default and legal action may be taken. There are many options available to borrowers to help them avoid this situation.
Notice of sale
A notice of sale is an official announcement of an upcoming sale transaction. Most often, the term is used in reference to foreclosure, where the lender is required to announce its plans to sell off the collateral. A municipal bond issuer may also issue a notice of sale as a way of requesting bids from prospective underwriters.
Notional principal amount
Notional principal amount, in an interest rate swap contract, is the hypothetical, agreed-upon amount used to calculate interest payments owed to each party to the agreement. In a swap contract, the notional principal amount is not actually transferred from one party to another.
Novation
Novation is the replacement of one agreement or obligation with another, where all parties to a contract agree to the change. Novation might be used to transfer an obligation to another party, or to replace an old debt with a new one.
NOW account
A NOW, or negotiable order of withdrawal, account is an interest-earning, bank deposit account against which the accountholder can write drafts.
NSF
An acronym for non sufficient funds. An NSF is issued by a bank when there is not enough money in the account to cover the amount of the check or transaction.
Number of free transactions per month
Number of free transactions per month sets a limit on how many account transactions a depositor is allotted during a one-month period. If the accountholder requests transactions in excess of the stated amount, she will be charged an extra fee for each extra transaction. Accounts that specify a number of free transactions per month usually have lower maintenance fees relative to accounts that offer unlimited free transactions.
Nuncupative will
A nuncupative will is an individual's verbal statement describing how he would like his personal property distributed after his death. Nuncupative wills must have at least two witnesses, but are still difficult to enforce.