Glossary of Financial Terms

L

Large Cash Transaction Report

Most financial institutions must report on "large transactions" in the following cases:

A financial institution receives an amount of $10,000 or more in cash in the course of a single transaction.

or

A financial institution receives two or more cash amounts of less than $10,000 each that total $10,000 or more. In this case you have to make a large cash transaction report if you know the transactions were made within 24 consecutive hours of each other by or on behalf of the same individual or entity. If you are an entity, you have to make a large cash transaction report if your employee or senior officer knows the transactions were made within 24 consecutive hours of each other by or on behalf of the same individual or entity.

To find out more about Large Cash Transaction Reporting see the FINTRAC guidelines .

· See Also · Financial Transactions and Reports Analysis Centre of Canada · FinCEN · Office of Foreign Assets Control

Late Payment Fee

The fee charged to an account holder who has not made a scheduled or agreed upon payment within a specified time period.

Lien

A legal claim held by one party against the property or other asset owned by another party.

Limited Power of Attorney

A legal document whereby an individual specifies another individual who will act on their behalf in monetary and other legal matters, but only to the extent specified by the document.

· See Also · Power of Attorney

Line Of Credit

An amount of credit extended to a business or individual that may be borrowed at once or in several increments provided those increments do not exceed a predetermined limit.

Loan

An amount of money extended to a borrower by a lender.

Loan Application

The document completed by a prospective borrower that allows the prospective lender ot ascertain the borrower's creditworthiness.

Loan Origination

A term used to describe the process of taking a loan application through to the release of funds to the person or company. Typically the process involves an assessment of the borrower's finances, valuation of the security for the loan, credit bureau inquiry, legal paperwork (e.g. commitment letter to a lawyer) and other documents.

The Portfolio Plus Loan and Mortgage module accomodates virtually all permutations and combinations to facilitate a lender's loan qualification criteria.

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