What Does 1913 Federal Reserve Act Mean?

The 1913 U.S. legislation that created the current Federal Reserve System. The Federal Reserve Act intended to establish a form of
economic stability through the introduction of the Central Bank, which would be in charge of monetary policy, into the United States.
The Federal Reserve Act is perhaps one of the most influential laws concerning the U.S. financial system.

Investopedia explains 1913 Federal Reserve Act

Prior to 1913, panics were common occurrences, as investors were unsure about the safety of their deposits. The Federal Reserve Act
gave the 12 Federal Reserve banks the ability to print money in order to ensure economic stability. In addition to this task, the Fed had
the power to adjust the discount rate/the fed funds rate and buy & sell U.S. treasuries.
What Does ABA Bank Index Mean?
A banking index that is made up of community banks and banking institutions. This index was created to represent the smaller
institutions of the banking industry and stands in contrast to the KBW Banking Index in that respect. The ABA index trades on the
Nasdaq under the symbol ABAQ.

Investopedia explains ABA Bank Index

The ABAQ Index is weighted according to market value. The index was created in 2003 in an effort to publicize the community
banking industry and is computed for both total and price return. The ABAQ is also designed to aid in improved market liquidity and
more equitable market valuations.

What Does Abu Dhabi Investment Council - ADIC Mean?

A sovereign wealth fund owned by Abu Dhabi, the capital of the United Arab Emirates (UAE). It is wholly owned and administered
by the UAE. The Abu Dhabi Investment Council is funded by revenue from the country's oil industry, and invests those revenues in a
wide range of asset classes, including equities, debt, real estate, infrastructure and private equity.
Its sister fund is the Abu Dhabi Investment Authority (ADIA), which is one of the world's largest sovereign wealth funds.
Investopedia explains Abu Dhabi Investment Council - ADIC
The Abu Dhabi Investment Council was established in 2007. While the fund does invest in assets across the globe, the primary focus
of the ADIC is to invest in Abu Dhabi's economy. Domestic assets include banks, investment houses and insurance companies.
What Does Accelerated Payments Mean?
A term associated with making additional unscheduled payments on a loan at predetermined, or random
intervals. Making additional unscheduled payments reduces the principal balance of the loan, meaning
that more principal and less interest is paid off in subsequent payments. Making accelerated payments will
lead to the early pay-off of a loan.
What Does Accommodation Endorsement Mean?
A written agreement from one entity to back the credit liability of another. This insurance is made without
consideration, and adds strength to the creditworthiness of the insured entity. This would usually be made
by a parent company to a subsidiary, and allows the subsidiary to take on the parent's credit standing. An
accommodation endorsement is similar to a government guaranteeing a third party's debt with its full faith
and credit.
What Does Account Aggregation Mean?
A process by which accounts are linked for the purpose of combining fees or to ease access for account
holders. One form of account aggregation is householding, whereby all the savings, checking and
brokerage accounts of a household are linked. In householded accounts, statements and online summaries
display all accounts within the household.
What Does Accounts Receivable Conversion - ARC Mean?
A process that allows paper checks received in payment for an account receivable to be electronically
scanned and converted into an electronic payment through the Automated Clearing House. ARC saves
time and the expense of actually processing the check. Both the vendor and the bank on which the
payment was drawn receive only an electronic image of the check.
What Does Accredited Automated Clearing House Professional - AAP Mean?
A professional designation awarded by NACHA (The Electronic Payments Association) to individuals who
are experts in electronic payments. Successful applicants earn the right to use the AAP designation with
their names for five years, which can improve job opportunities, professional reputation and pay. Every
five years, AAP professionals must complete 60 hours of continuing education or successfully retest in
order to continue using the designation.
What Does Active Asset Mean?
An asset that is used by a business in its daily or routine operations. Active assets can be tangible, such as
buildings or equipment, or intangible, such as patents or copyrights. Active assets are listed as assets on
the business's balance sheet.
What Does Add-On Interest Mean?
A method of calculating interest whereby the interest payable is determined at the beginning of a loan and
added onto the principal. The sum of the interest and principal is the amount repayable upon maturity.
What Does All Savers Certificate Mean?
A type of nontaxable certificate of deposit account with a duration of one year that was used primarily by
thrift institutions to build funds for mortgage lending. All Savers Certificates were authorized by the
Economic Recovery Tax Act of 1981.
Investopedia explains Altered Check
Altered checks are specifically addressed in the Uniform Commercial Code (UCC) Section 3-407. The term
"alteration" is defined as either:
(1) an unauthorized change in an instrument that purports to modify in any respect the obligation of a
party; or
(2) the unauthorized addition of words or numbers or another change to an incomplete instrument relating
to the obligation of a party.

Under the UCC, the liability for an altered check can reside with the various parties involved - including the
customer drawing the check, the bank on which the check is drawn and the bank that presents the check -
depending on the evident negligence. Ordinarily, a customer needs to examine his or her bank statement
and report the loss within 30 days. Regardless of any negligence by the drawee bank, a customer will be
barred from recovery if he or she does not report the loss within one year.
What Does Article 9 Mean?
An article under the Uniform Commercial Code (UCC) that governs secured transactions. Article
9 encompasses a wide variety of possessory liens and determines the legal right of ownership if a debtor
does not meet his or her obligations.

In 2002, Article 9 was revised to substantially modernize and expand the scope of what can be used
as collateral to include credit card receivables, electronic chattel paper, accounts receivable and business
inventory.
Investopedia explains Anticipation Note
Anticipation notes are used to meet the short-term cash flow needs of cities or states and provide a way to
manage the timing mismatch between their revenues and expenses. There are four different types of
anticipation notes:

1. Tax anticipation notes (TANs), used in anticipation of future tax collections

2. Revenue anticipation notes (RANs), issued with the anticipation that non-tax revenue (such as state aid)
will pay the debt
3. Tax and revenue anticipation notes (TRANs), which are paid off with a combination of taxes and revenue
4. Bond anticipation notes (BANs), which function as bridge loans and are issued when the municipality
expects a future longer-term bond issuance to pay off the note at maturity
What Does Asian Currency Unit - ACU Mean?
A proposed basket of Asian currencies, similar to the European Currency Unit, which was the precursor of
the Euro. The Asian Development Bank is responsible for exploring the feasibility and construction of the
basket.
What Does Bad Debt Recovery Mean?
A debt from a loan, credit line or accounts receivable that is recovered either in whole or in part after it has
been written off or classified as a bad debt. Because it generally generates a loss when it is written off, a
bad debt recovery usually produces income.

In accounting, the bad debt recovery would credit the "allowance for bad debts" or "bad debt reserve"
categories, and reduce the "accounts receivable" category in the books.
What Does CAMELS Rating System Mean?
An international bank-rating system where bank supervisory authorities rate institutions according to six
factors.

The six factors are represented by the acronym "CAMELS."

C - Capital adequacy
A - Asset quality
M - Management quality
E - Earnings
L - Liquidity
S - Sensitivity to Market Risk

Bank supervisory authorities assign each bank a score on a scale of one (best) to five (worst) for each
factor. If a bank has an average score less than two it is considered to be a high-quality institution, while
banks with scores greater than three are considered to be less-than-satisfactory establishments. The
system helps the supervisory authority identify banks that are in need of attention.
What Does Cash Collateral Mean?
Cash collected when liquid assets are sold during Chapter 11 bankruptcy proceedings. This can be
obtained through the sale of cash equivalent securities or through the sale of personal property against
which debt may be secured.
What Does Drop Dead Fee Mean?
Fee paid by a borrower to a lender when an acquisition deal falls through. A drop dead fee is applied to
compensate the loaning institution for lost interest if a loan is secured and then becomes unnecessary
because of a failed deal. The funds have to have been borrowed for acquisition purposes

What Does Drop Dead Fee Mean?

Fee paid by a borrower to a lender when an acquisition deal falls through. A drop dead fee is applied to
compensate the loaning institution for lost interest if a loan is secured and then becomes unnecessary
because of a failed deal. The funds have to have been borrowed for acquisition purposes.

What Does Mortgage Mean?

A debt instrument that is secured by the collateral of specified real estate property and that the
borrower is obliged to pay back with a predetermined set of payments. Mortgages are used by
individuals and businesses to make large purchases of real estate without paying the entire
value of the purchase up front.

Mortgages are also known as "liens against property" or "claims on property".