Banking & Finance

What is residential real estate? What is commercial real estate?

The two major types of real estate are residential and commercial.  There is no industry standard for classifying property and sub-property types.  The two leading organizations in...


What is repossession?

The act of taking possession of property by the owner of the asset or a creditor with a security interest in that asset upon termination of or debtor default on the agreement that...


What is recourse and nonrecourse lease assignment?

The right of an assignee or buyer in a financial transaction to demand performance from the transaction assignor or seller in the event of default on the underlying debt is recours...


What is real property security?

Real property is permanent, nonmovable property, such as buildings, land and permanent improvements to land, including the interests, benefits and rights inherent in ownership of r...


What is property, plant and equipment (PP&E)?

Property, plant and equipment (PP&E) comprises such noncurrent assets as land, buildings, machinery and equipment, furniture and fixtures, and leasehold improvements that are a...


What is primary syndication?

Initial underwriting is when a financing transaction is underwritten by mandated lead arrangers, which triggers the start of syndication.  After this, and depending on the syndicat...


What is personal property security?

Personal property is any tangible or intangible property other than real property (real estate) that is movable and separable from realty, such as fixtures, tools, vehicles and inv...


What is participation syndication?

A US transacted participation is a financing arrangement that involves the true sale of an undivided interest in a loan and commitment by the lender of record (grantor) to particip...


What is paid-in capital?

The principal component of the shareholders’ equity section is the paid-in capital accounts.  Paid-in capital reports the total amount of equity capital invested in the company by...


What is operational risk?

The risk of loss due to inadequate or failed internal processes, people and systems or from external events is operational risk.  Errors in data, books and records; omissions in th...


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