The date for the delivery of securities and payment of funds.
The interest rate charged by banks on overnight loans of their excess reserve funds to other banks. All or a portion of an issue with stated maturities in consecutive years as opposed to mandatory sinking fund redemption amounts. In a CMO, the residual is that tranche which collects any cash flow from the collateral that remains after obligations to the other tranches have been met. An amortizing structure that permits significant cash-flow engineering, which is generally prohibited with grantor trusts. The section of the Internal Revenue Code under which not-for-profit organizations receive their tax-exempt status.
The adjustment of the interest rate on a floating-rate security according to a prescribed formula. Owner trusts are often used with auto loans, equipment leases and student loans. Dollar limitation of private-activity bonds that are allowed to be issued, by state, each year. Triggers are common on index amortization notes and range securities. The date on which a security is deemed to be issued or originated. Securities that are exempt from state and local as well as federal income taxes are said to have double or triple tax-exemption.
The rate banks charge each other for short-term Eurodollar loans. Duration adjusted to price and yield levels to represent percent change relationship of price and yield. Short-term promises to pay specified amounts of money, secured usually by specific sources of future revenues, such as taxes, federal and state aid payments, and bond proceeds. Failure to pay principal or interest promptly when due. They are created by brokerage houses, and are liquidated as investments within the trust are paid off. However, certain securities that mature in up to three years may be considered short-term debt. The rate the Federal Reserve charges on loans to member banks.