banking

Collateral

Property or assets that are committed by an individual in order to guarantee a loan. Upon default, the collateral becomes subject to seizure by the lender and may be sold to satisfy the debt.

EXAMPLE

In securing a mortgage, the borrower...

Collection Agency

A collection agency is any person or company hired to collect or attempt to collect debts due or asserted to be due to another person. Some states, like Illinois, define a collection agency as a person who engages in the collection of a debt...

Comaker

A person who cosigns a check, draft or other negotiable instrument with another person or persons. Each comaker has a legal obligation to pay the entire amount due on the instrument, should one of the parties default.

Commerce

In 15 U.S.C. §1127:

1) The exchanging, buying, or selling of things having economic value between two or more entities, for example goods, services, and money. Commerce is often done on a large scale, typically between individuals, businesses,...

Commerce Clause

Overview

The Commerce Clause refers to Article 1, Section 8, Clause 3 of the U.S. Constitution, which gives Congress the power “to regulate commerce with foreign nations, and among the several states, and with the Indian tribes.

Congress has...

Compound Interest

Compound interest refers to interest earned on prior interest from an investment. This occurs where an investor continuously earns interest on an outstanding debt owed to them or an investment compounds in value. This is in contrast to simple...

Confession of Judgment

Definition from Nolo’s Plain-English Law DictionaryUsually, a clause within a promissory note, allowing the creditor to, upon nonpayment by the borrower, get a court judgment for the amount owed and in some cases collect from the borrower's assets, all...

Conforming Loan

A conforming loan is a mortgage that is below the conforming loan limit established by the Federal Housing Finance Agency (FHFA) and abides by other restrictions of Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal...

Consumer Credit

Consumer Credit: An Overview

Credit allows consumers to finance transactions without having to pay the full cost of the merchandise at the time of the transaction. A common form of consumer credit is a credit card account issued by a financial...

Consumer Credit Counseling Service (CCCS)

Consumer Credit Counseling Services (CCCS) are mostly non-profit organizations that offer free or low-cost counseling, education, and debt repayment services to individuals in danger of bankruptcy. They can help...

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