Lease is More II!
Lease
What is "product where the bank owns the car and the client rents it for a specific amount of time, while paying a monthly rent (and possibly tax) charge."
Collateral
What is "anything of value used as security; what the borrower pledges to secure the loan. (e.g., car title, mortgage)"
Payoff
What is "the amount needed to pay all outstanding balances owed and close the account."
Interest
What is "money paid regularly at a particular rate for the use of money lent by a bank or company."
Draw Period
What is "specific period of time during which a borrower may obtain advances on a U.S. Bank revolving line of credit."
Lessor
What is "bank or company that owns the collateral and allows client (lessee) to rent vehicle as part of lease contract."
Gap Coverage
What is "extra coverage purchased by the client to cover any difference between the insurance payoff and total loss payoff."
Automated Clearing House (ACH)
What is "method of payment that allows U.S. Bank to electronically draw the amount agreed upon at the regularly-scheduled interval from the client's account."
Equity
What is "difference between fair market value of property and all outstanding balances (eg. mortgage) against that property."
Repayment Period
What is "when the draw period for a line of credit ends. During the repayment period, the borrower can no longer obtain credit advances and must repay the outstanding balance. Length of time for repayment is based on the balance owed when repayment period begins. Payments are due monthly during this time."
Use Tax
What is " tax charged by the city, county, and/or state in which the client lives."
E-Title
What is "a titling method where no physical paper title exists until the account is paid in full and the electronic lien is removed by the licensing agency."
NOTE: Does NOT apply to leases
Grace Period
What is "the amount of time given after the due date to make the monthly payment without penalty."
Restricted
What is "to place a credit line into a paydown or close-to-post status. The same action as "freezing" an account."
Prime Rate
What is "the interest rate set by the U.S. Treasury Dept. and published in the Wall Street Journal used to calculate all interest rates at U.S. Bank."
Excess Wear and Tear
What is "excess damage to collateral that occurred during the lease term per the contract and is billed after the lease is closed."
Vehicle Identification Number (VIN)
What is "the unique identification number used to individually identify collateral like vehicles and trailers."
Bill Pay
What is "payment method for reoccurring payments that allows a check or electronic transaction set up with a third-party institution or U.S. Bank to pay the total amount due."
Paydown
What is "account status on a line of credit where access to their account is restricted; The credit line cannot be advanced; only payments can be made. When the balance is repaid, the line will automatically close."
Close-to-Post
What is "status on line of credit where account is restricted and is in the process of closing with a balance still being owed."
Personal Property Tax
What is "tax billed by the city, county and/or state in which the vehicle is registered and garaged. Appears usually on lease accounts."
Uniform Commercial Code (UCC)
What is "a lien filing type used to secure the lien on an item which does not have a title."
Residual Value
What is "the amount agreed upon on a lease that the vehicle is worth at the end of the lease term."
Excise Tax
What is "tax charged by the city, county, and/or state in which the client lives."
Also called Use Tax
Subordination
What is "the request that occurs when a customer is refinancing their 1st mortgage and they need their U.S. Bank home equity loan/line to remain in 2nd lien position."