Glossary of Financial Terms
If the Tax Identification Number (TIN) reported for an account owner does not match the TIN on record for that owner
with the Internal Revenue Service and Social Security Administration, then the TIN reported for the account owner is
considered invalid by the Internal Revenue Service. A B-Notice is generated.
A B-Notice states that if the account owner fails to furnish the correct TIN to your institution within 30 business
days, you may be required to begin withholding a certain percentage of the interest paid on accounts owned by these
individuals. For more information see Federal Backup Withholding.
A detailed listing of assets, liabilities, and capital accounts (net worth), showing the financial condition of a bank
or company as of a given date. A balance sheet illustrates the basic accounting equation; assets = liabilities + net
worth. In banking, the balance sheet is usually referred to as the statement of conditions.
A final loan payment that is larger than the regular scheduled payment. The option of having a balloon payment allows
the customer more flexibility. The customer may be able, at maturity, to refinance, the loan balance depending on bank
policies and contract agreements.
Any depository financial institution, including a national bank, a state bank, a federal or state savings bank, a
credit union, or a savings association.
A type of certificate of deposit typically issued by banks. Can be an Original Issue Discount (OID) in which case the
customer will receive a form 1099-OID, rather than a 1099-INT.
First Central Savings Bank has eleven different CD terms that all pay you outstanding rates. First Central Savings
is dedicated to keeping your savings flexible.
A check, also known as a cashier's, treasurer's or official check, drawn by the bank on itself. Since the drawer and
drawee are one and the same, acceptance is considered automatic and such instruments have been legally held to be promised
The individuals selected by the banks stockholders to constitute the board of directors and who form the active,
governing body of the bank as a corporation.
A report rendered by a bank to a customer, showing the account balance at the start of a period, the transactions
affecting the account and the closing balance.
The party who is in possession of a check, security, or title document. A check made payable to Cash is a bearer
The party who is to receive the proceeds of a trust, insurance policy, letter of credit, or other transaction.
The signature of a person or business on an instrument (check or note) making it payable to a holder in due course and
containing no restrictions.
Board of Governors
A seven-member group appointed by the president and confirmed by the Senate for 14-year terms that directs the
operations of the Federal Reserve.
An instrument that evidences long-term debt. The issuer (a corporation, unit of government, or other legal entity)
promises to repay the stated principal plus interest on a specified date. Bonds may be registered (identifying the holder)
or payable to bearer (not identifying the holder).
Bond of Indemnity
A written instrument issued to protect a party against loss.
The term describing the series of steps that takes place when you turn on the computer.
Example: The disk operating system (DOS) is loaded into the computer's internal memory (RAM) in the boot process.
A disk containing the Disk Operating System (DOS) files needed to start and operate DOS. A boot disk can be a diskette
or a hard drive.
The development of a plan of future expenditures and income based on past experience, as modified by managerial
objectives and estimates of future income and expenditures.
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