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GLOSSARY
Central bank
A central bank is responsible for setting and implementing a political entity's monetary policy. An example is the Federal Reserve Bank in the United States. The Federal Reserve Bank oversees the monetary policy, issues money, and regulates the banking system, among other things.
Certainty equivalent
Certainty equivalent is the rate of guaranteed return an investor would trade for a higher, but less certain, return. The certainty equivalent, which is lower than the riskier rate of return, helps corporate debt issuers determine what level of interest their bonds would have to pay to entice investors.
Certificate of claim
A certificate of claim is a borrower's promise to reimburse a lender if a foreclosure sale of the collateral doesn't produce enough money to pay back the loan balance and other amounts outstanding in full.
Certificate of deposit (CD)
A certificate of deposit, or CD, is a fixed-rate, time deposit issued by banks and other financial institutions. Upon purchasing the CD, the investor agrees to keep the funds on deposit with the CD issuer for a certain period of time. CDs pay higher interest rates than unrestricted cash deposits. Most CDs are FDIC-insured.
Certificate of deposit index
Certificate of deposit index, also known as cost of deposit index or CODI, is used as an underlying benchmark for interest rates on adjustable-rate mortgages. The index is an average of the most recent 12 months of three-month certificate of deposit yields, as published by the Federal Reserve Board.
Certificate of deposit index (CODI Index)
Certificate of deposit index, also known as cost of deposit index or CODI, is used as a underlying benchmark for interest rates on adjustable-rate mortgages. The index is an average of the most recent 12 months of three-month certificate of deposit yields, as published by the Federal Reserve Board.
Certificate of eligibility
This is a document issued by the Veternas Administration to qualified veternas certifying them eligible for a VA loan for home and business. This certificate can be obtained by sending DD-214 (Seperation Paper) to the local VA office along with a VA form 1880 which is a request for Certificate of Eligibility)
Certificate of occupancy
A certificate of occupancy designates that a local building authority has inspected a recently built or renovated structure and deemed it safe to be occupied.
Certificate of reasonable value (CRV)
The Department of Veternas Affairs (VA) issues this document to establish the maximum amount of loan that can be given for a VA mortgage. It is a VA appraisal expressing the property's current market value.
Certificate of sale
A certificate of sale is issued to the winning bidder at a foreclosure sale. The document indicates that the bidder will receive the property's title once any conditions of the sale are completed and confirmed by the court.
Certificate of title
A certificate of title describes a real estate property and the status of its ownership.
Certificate of use/right to use/timeshare license
A certificate of use/right to use/timeshare license documents the certificate holder's entitlement to stay at a vacation property for a certain period of time.
Certificate of Veteran status
FHA form filled out by the VA to establish a borrower's eligibility for an FHA Vet loan. These documents are obtainable through your local VA office.
Certified Annuity Specialist - CAS
A Certified Annuity Specialist (CAS) is a person who's been trained in the field of fixed- and variable-rate annuities. The designation is issued by the Institute of Business & Finance upon completion of specific course requirements, and is only renewed when the specialist completes a minimum amount of continuing education per year.
Certified check
A certified check is a draft that's guaranteed by the issuing bank. The bank may set aside the amount of the check from the accountholder's available funds so that the money is not spent before the check is presented for payment. Generally, a bank charges a fee for check certification.