Bus Law 6.02
College: First year, College: Second year, College: Third year, College: Fourth year, Graduate school, Professional
Adjusted balance method
Finance charges are added after subtracting payments made during billing period
Artisan's Lien
Lien for unpaid services assessed against personal property that has been improved
Average daily balance method
Finance charges figured by adding balances for each day in billing period and then divide by the number of days in the billing period.
Collateral
Property that is the subject of a secured loan
Cosigner
Helps protect a loan when a borrower's credit rating is poor or has not been established
Credit card
Card or other device used to obtain goods, money, or services on credit
Creditor
A party who sells on credit or lends money
Debtor
A party who buys on credit or borrows money
Financial agreement
A written notice of existence of a security interest in identified property
Garnishment
Court-ordered procedure by which a portion of a delinquent debtor's wages are paid to satisfy the debt
Grace period
Interest-free period before payment is due
Guarantor
Party agreeing to be secondarily liable in case of default by the principal debtor
Lien
Legal right in another's property as security for the performance of an obligation such as the repayment of a loan
Mechanic's lien
Lien against realty available to one who has supplied labor or materials to improve it
Open-end credit
Credit that can be increased by debtor up to a limit set by creditor
Pawn
Pledge of tangible personal property
Pledge
Creditor obtains possession of collateral by written or oral agreement
Pledgee
Creditor in a pledge who takes possession of property given up by pledgor
Pledgor
Debtor in a pledge who voluntarily gives up possession of the property
Previous balance method
Finance charges figured as if no payments made during billing period
Revolving charge account
An account in which you can keep an outstanding balance and pay a small amount each month
Right of contribution
Cosurety who pays the full debt is entitled to judgment against the other cosureties for their proportionate share of the debt
Secured loan
Creditors obtain an interest in something of value
Secured party
Lender or seller who holds secured interest
Security agreement
A contract where debtor retains possession of collateral under a written contract
Security interest
Interest given to creditors
Surety
Third party agreeing to be primarily liable for debt in case of default by the principal debtor
Suretyship
Being primarily liable for a debt created in favor of the principal debtor
Usury
Charging a greater amount of interest on a loan than is allowed by law