An escrow advance occurs when a mortgage lender pays a required expense, such as property taxes or insurance, from their own funds because the borrower’s escrow account has insufficient balance. The lender then seeks reimbursement from the borrower through an adjusted payment plan.
Insufficient funds occur when a bank account does not have enough money to cover a requested transaction. This results in the transaction being declined or the account entering an overdraft state.
The memo line on a check is an optional space used by the payer to note the purpose of the payment. It serves as a personal record and a reference for the recipient without affecting the legal validity of the check.
Surcharge free refers to an Automated Teller Machine (ATM) transaction where the machine owner does not charge the user an additional convenience fee. This is typically achieved through network agreements between financial institutions.
A prenote, short for pre-notification, is a zero-dollar transaction used to verify that bank account and routing information are correct before actual funds are transferred. It acts as a validation step to prevent payment failures in direct deposit systems.
A $5000 secured bond is a financial guarantee, typically used in legal or commercial contexts, where $5000 is pledged as collateral to ensure the fulfillment of an obligation. If the terms of the bond are breached, the funds are forfeited to the beneficiary.
The loan-to-deposit ratio (LDR) is a financial metric used by banks and regulators to assess a bank’s liquidity by comparing its total loans to its total deposits. A higher ratio indicates greater reliance on deposits to fund loans, which may signal liquidity risk, while a lower ratio suggests underutilization of deposit base.
A restricted credit card is a payment account that has been limited by the issuing bank, preventing the holder from making certain transactions. This status typically occurs due to security concerns, payment delinquency, or suspected fraudulent activity.
The phrase ‘Return to Maker’ on a check indicates that a financial institution has refused to honor the payment and is returning the document to the person who wrote it. This usually occurs due to insufficient funds, account closures, or technical irregularities.
The phrase ‘Refer to Maker’ is a banking notification indicating that a check cannot be processed and is being returned to the person who wrote it. This typically occurs due to insufficient funds or account irregularities.