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Dictionary of banking and economic terms.

Dictionary of banking and economic terms

Aval - A financial guarantee by a third party to assume the burden of a debt, especially a bill of exchange in the event of default.

Availing of bills of exchange - is acceptance of obligations by the bank under complete or partial payment of bill of exchange for one of the persons obliged on the bill of exchange. Availing of bills of exchange of the bank is the guarantee of obligations of client before contractors with which disburse the bills of exchange - that makes the clients bills of exchange of the bank the same reliable payment instrument, as well as guarantee of the bank.

Acceptor - the person or organization on which a cheque or other order for payment is drawn.

Bill of exchange (promissory note) - a document, usually negotiable, containing a signed promise to pay a stated sum of money to a specified person at a designated date or on demand.

Guarantee the payment of a bill - Provision of security of a bill payment by the bank for any person who is liable on the bill. Guarantee the payment of a bill is a particular form of lending by banks to business activities and is performed on the general principles of bank lending by proxy and by customers. Guarantee of payment of a bill may be provided by:
1. Avalisation of the bills;
2. Written guarantee to ensure payment of the bill. Warranty, burdened by other conditions can provide only appropriate commitment except the unconditionality of payment and payment amount.

Bank discount - a sum equal to the interest at a given rate on the principal (face) of a bill or note from the time of discounting until it become due.разница между полной (номинальной) суммой векселя и суммой, которая уплачена при приобретении векселя, при условии, что сумма приобретения векселя меньше полной (номинальной).

Fiduciary securities transactions is the bank's operations in securities management on behalf of, by and for the benefit of the client.

Domiciliation means appointment of a third party as a bill payer to perform payment of bills in due time and in a prescribed place for fee to be paid out of funds provided by a drawer (customer). Bills domiciliation service allows customers to provide additional services to owners of their bills throughout Ukraine without any considerable organizational and material costs.

Investment banking - is the bank's activities with respect to inclusion of cash, property and intellectual property in the objects of business for profit.

Endorsement - the handing over of rights of a financial/legal document or a negotiable instrument to another person. The person who hands over his/her rights is known as the endorser, and the person to whom the rights have been transferred is known as the endorsee.

Endorser - the person who, by signing a check or negotiable instrument, transfers his ownership interest to another party.

Endorsee - the person who will benefit from a cheque, bill of exchange etc when it is endorsed.

Collection is the implementation of the bank on behalf of the customer (drawer) operations with the bills and the accompanying commercial documents on the basis of instructions received from the principal to:
1. Receipt of payment and / or acceptance
2. Transfer notes and commercial documents against payment and / or acceptance
3. Transfer notes and commercial documents for other conditions

Commission activities on securities - it is the activity of buying and selling securities, which are bank-securities trader in his own name on behalf of and at the expense of another person.

Committent - party to an agreement (contract), through which the bank is entrusted to perform operations on a bill of exchange, on behalf of the bank.

Commercial activities on securities - it is the activity of buying and selling securities, which are bank-dealer in securities on its own behalf and for its account.

REPO operations - operation which consists of two parts, and in which a single master agreement concluded between market participants to sell or purchase securities for a specified period with a commitment to reverse the sale or purchase of a specified period. Or, at the request of either party, at a predetermined price. In its economic essence repo transaction - a credit transaction in which securities are used as collateral.

The bill payer - maker of promissory note, drawee (acceptor) to a bill of exchange.

Savings (deposit) certificate - the written testimony of the bank to deposit funds, which confirms the right of the depositor to obtain after the end of the period the deposit and interest thereon. According to the legislation of Ukraine savings certificate is a security.

Drawer - A person who orders a bank to withdraw money from an account to pay a designated person a specific sum according to the term of a bill, a check, or a draft. An individual who writes and signs a commercial paper, thereby becoming obligated under its terms.

Drawee - the person or organization on which a cheque or other order for payment is drawn. 

Discount of bills - credit operation, which is to purchase of bill of exchange only by bank before maturity on it in a drawer for cash at a discount.

Issuer - is a legal entity that develops, registers and sells securities for the purpose of financing its operations.

 Issuers are legally responsible for the obligations of the issue and for reporting financial conditions, material developments and any other operational activities as required by the regulations of their jurisdictions.

 The most common types of securities issued are common and preferred stocks, bonds, notes, debentures and bills.

12 November, 2011 / Просмотров: 2732 / ]]>Печать]]>