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GLOSSARY
Direct financing
When a buyer sets up his or her own financing through an outside financial lender or institution as opposed to setting it up through the dealer.
Direct lease
A direct lease is a type of financing, usually for equipment. The lessor buys the property or equipment from the manufacturer and then leases it to another party (the lessee) at a profit.
Direct Loan
Refers to the William D. Ford Federal Direct Loan program. This lender provides student loans to students and parents directly through the U.S. Department of Education rather than a bank or lender.
Direct participation program - DPP
A direct participation program, or DPP, is a business entity that operates as a passive investment vehicle. The entity makes investments, often in real estate, and then passes the resulting cash flows to investors.
Direct tax
Direct tax describes a tax that's paid directly to the taxing authority. For example, property taxes are paid to the tax assessor, and income taxes are paid to the IRS. Sales tax, however, is paid to a merchant first ,before being forwarded to the state. Direct tax can also refer to a tax that's related to property ownership, as opposed to a tax that's assessed upon the occurrence of some event.
Directors' indemnities
Directors' indemnities are promises by a company that the members of the board of directors won't be held liable for losses associated with the company's actions. Such indemnities would specify how the directors are protected.
Disaster loss
Disaster loss is the occurrence of damages associated with an unavoidable destructive force, such as a hurricane or forest fire. The parties who suffer disaster losses may qualify for special tax privileges.
Discharge
Discharge is a synonym for release. In lending, discharge means to retire or write-off a debt.
Discharge of bankruptcy
Discharge of bankruptcy is a court order that ends a bankruptcy case, and clears the bankrupt debtor from the obligation of repaying creditors.
Discharge of lien
A discharge of lien is the release or elimination of a lien, usually following the repayment of debt, or satisfaction of a claim.
Disclaim
To disclaim is to deny or give up a right, ownership interest, or obligation. The action of disclaiming is usually done in writing, and it may or may not be enforceable.
Disclaimer trust
A disclaimer trust is a legal entity that holds assets for the purposes of passing them on to a beneficiary or beneficiaries at some future date. A surviving spouse can renounce ownership of assets and have them passed into the disclaimer trust without incurring the usual estate tax liabilities. The trust can then make regular payments to the beneficiaries.
Disclosed dual agency
Disclosed dual agency is a situation where a real estate broker represents both buyer and seller in a transaction; both parties are informed of the dual representation, and are made aware of the limitations of the situation. Limitations include the inability to represent the interests of both buyer and seller at the same time.
Disclosure
The release of information which is relevant to the matter at hand. A statement identifying potential defects to a property, such as the existence of lead paint or chemicals known to cause cancer. Disclosure also refers to the act of the lender informing the borrower of all of the terms of the loan at the time of signing, including interest rates and other pertinent information.
Disclosure statement
A disclosure statement is any document that spells out the terms of a debt arrangement, or other type of contractual relationship. Financial institutions must provide IRA applicants with a disclosure statement that clearly states the rules of the IRA. Lenders must provide a prospective borrower with a disclosure statement prior to loan funding, so that the borrower has a written explanation of the proposed loan terms.