A clause in a note stating that the monthly payments are to be so many dollars “Or More”.  This eliminates  any kind of prepayment penalty.

This is a portion/clause contained in your mortgage that allows the bank to call in the whole balance due on the loan in the event of missed payments. Without this clause, the bank must declare a separate default for each missed payment as the payment is missed. An acceleration clause allows a missed payment to be considered a default of the whole note and mortgage, and allows the bank to call the full balance due.

The amount of interest earned on a note, but not yet received in payment.  An example would be a straight note (no payments).  At the end of the first year the balance owed would be the original principal plus one year’s interest.

A Latin term meaning “based on value,” which applies to property taxes based on a percentage of the county’s assessment of the property’s value. The assessed value is the standard basis for local real property taxes, although some place “caps” (maximums) on the percentage of value or “parcel taxes”, which establish a flat rate per parcel. Ad valorem taxes may also be applied to personal property, such as a duty on imported items and motor vehicles.

The interest is applied to the loan amount to get yearly interest.  This is multiplied by the number of years.  This total interest is added on to the loan balance.  The monthly payment is calculated by dividing this number (principal plus add-on interest) by the number of payments.  This method contrasts with charging interest on the remaining principal balance.

A mortgage or other real estate loan wherein the interest rate and payments that correspond to the interest are adjustable from year to year according to some index such as the rate paid by the government on Treasure Bills.

The bankruptcy rules consist of nine distinct parts with Part VII governing adversary proceedings. Under Bankruptcy Rules Rule 7001, an adversary proceeding may be filed in a debtor’s bankruptcy action for certain specific reasons. An adversary proceeding may be filed to recover money or property of a debtor, for the sale of a debtor’s property by a co-owner, to object or revoke a discharge, to revoke the confirmation of a reorganization plan, to determine the dischargeability of a debt, to obtain an injunction or other equitable relief, and for other matters.

A type of defense in which the defendant seeks to avoid liability by introducing new evidence not addresses in the claims of the plaintiff’s complaint. Such a defense must be raised in the defendant answer, and because affirmative defenses require the assertion of facts beyond those claimed by the plaintiff, the defendant has the burden of proof for the defense. The burden of proof is typically lower than beyond a reasonable doubt. It can either be clear and convincing or preponderance of the evidence. An affirmative defense must be timely made by the defendant in order for the court to consider it, or else it is considered waived by the defendant’s failure to assert it.

The calculator logic of putting the operation sign (plus, minus, times or divided by) before the number is entered.

A note secured by deed of trust that “wraps around” a smaller senior loan.  See also “Wraparound Mortgage”.