Please use the search field below to search the Industry Dictionary for a particular word or a group of words, or use the letters below to search for expressions alphabetically. Search:    A  B  C  D  E  F  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z  Your search returned 145 result(s). A/K/A Acronym for "also known as"; a reference to an alias AAA Acronym for American Arbitration Association AAEL Acronym for American Association of Equipment Lessors, the former name of the Equipment Leasing Association of America." AALA Acronym for American Automobile Leasing Association. ABA Acronym for the American Bankers Association Abandonment 1. (US bankruptcy based) The voluntary removal by the bankruptcy trustee of a ""burdensome"" asset from the bankruptcy""estate. 2. A lessor’s failure to seek return of a leased asset at the end of the lease term, often as planned from the inception of the"lease. Above-The-Line Accounting entries and the transactions they represent that go into the determination of profit and loss. Absolute Owner In some countries, e.g., Sri Lanka, the party who holds legal title (or its equivalent) to an item. Abstract of title A report that traces the ownership of real property from the past to the present. Accelerated Cost Recovery System (ACRS) (US tax based) (1). A system of rapid depreciation of the costs of most assets for purposes of federal income taxation. (2) The depreciation schedule of the Economic Recovery Tax Act of 1981 (ERTA), modified by the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), that allows faster write offs of plant and equipment, most often classified as 3,5, or 10 year property. The accelerated cost recovery system (ACRS) replaced the asset depreciation range (ADR) system that was built on the concept of useful life. Accelerated Depreciation The depreciation of an asset for tax, accounting or other purposes, at a rate faster than that at which the asset’s economic useful life is declining in actual use or possession. Acceleration Clause A provision in a financial instrument which provides that the occurrence of a default by one party makes that party’s outstanding balance immediately due and payable Acceptance 1. (Leasing based) The event whereby a lessee agrees that the equipment delivered is proper and acceptable for all purposes of the lease and that its lease obligations are thereafter fully binding without further condition. 2. the event by which an offer to enter into a contract is accepted so as to create a binding contract. 3. the event by which a drawee on a bill of exchange agrees to pay or otherwise honor that bill of exchange. Accommodation Party One who signs an instrument in any capacity for the purpose of lending his name to another party to it. Accord and Satisfaction The settlement of an obligation or dispute with something other than performance of the original agreement or full enforcement of any action or other proceeding brought to enforce the original obligation. Accounting The practice of keep a set of financial records in a rational, formalized methodology, usually in accordance with a generally recognized set of rules and standards. Accounts Payable Amounts owed by a business to its creditor. Accounts Receivable Amounts owed a business by its debtors. The term is usually used in reference to amounts owed by customers. Accrual Basis A method of accounting that shows expenses as incurred and income as earned even though such expenses and Accrued Charge/Expense Expense incurred but not yet paid Accrued Income Income earned but not yet received. Accrued Interest Accrued Interest Accummulated Depreciation The sum of depreciation allowances of an asset that have been reported to date; the total amount of an asset that has been "written off" to date. Acid Test The ratio between current assets (less any inventory) and current liabilities as shown on the balance sheet; the quick ratio. This test provides some indication of liquidity. Acknowledgement A formal statement by a party before a notary public to the effect that the party has executed a specific instrument or document. Acquisition 1. (Leasing based) the purchase of equipment, a portfolio of leases, or some other asset. 2. the obtainment of a right or other interest in property. ACRS (US tax based) An acronym for Accelerated Cost Recovery System, a system of rapid depreciaton of the costs of most assets for the purposes of federal income taxation created by the Economic Recovery Tax Act of 1981. ACRS (Modified) The Tax Reform Act of 1986 modified the ACRS by prescribing depreciation methods for each ACRS class in lieu of statutory tables. Equipment is assigned among 3,5,7,10,15, or 20 year classes depending on ADR lives. ACRS Life (US tax based). The period of time, expressed in years over which an asset is depreciable for federal income tax purposes. Action The enforcement of one’s legal rights in a court; a lawsuit. Actual Authority The authority in fact to act on behalf of another so as to legally bind that other party. Actuarial Interest Interest determined by a constant rate on a declining principal balance Ad Valorem Tax A tax on the ownership of property. Additional Insured A party other than a party in whose name insurance is issued, who is also protected against losses covered by a given insurance policy. Add-On Interest Interest charged on the original amount of a loan throughout the term of a loan (vs. interest charged on a declining principal balance). Adequate Assurance (US bankruptcy based) A short-hand reference to "adequate assurance of future performance," one of the three items a lessor is entitled to receive if a bankruptcy estate desires to assume the lease. Adequate Protection (US bankruptcy based) The security, whether money, insurance, court-ordered action or proscription from action, created or imposed by the bankruptcy court in lieu of a return of the creditor’s collateral from the bankrupcty estate. The phrase was intentionally left undefined in the Bankrupcty Code so that the bankruptcy court could have maximum flexibility in crafting protection for a creditor who will have to suffer the debtor’s continued use of the collateral. Adhesion Contract A contract in which one party has been able to forcibly extract concessions from another party due to significantly unfair economic bargaining power. Adjudication The judicial resolution of a dispute or part of a dispute. Adjustable-Rate Mortgage A mortgage in which the interest rate changes in accordance with changes in a specified rate index. Adjusted Basis (Tax and Accounting based) The amount of depreciation of an asset still available to be taken in the future after reducing the original basis by all depreciation taken to date. Administrative Expense (US bankruptcy based) An expense approved by the court as an appropriate charge payable by the bankruptcy estate itself. An administrative expense is accorded the top priority for payment above all other creditors. Administrative Order (US bankruptcy based) An order issued by the bankruptcy judge that pertains to the administration of the bankruptcy estate. Administrative Rent (US bankruptcy based) The rent to be paid by a lessee in bankruptcy during the period while the lessee is deciding whether to assume or reject a lease. Administrative rent is generally the fair rental value and may or may not be determined to be the rental payment (lease payment) specified in the lease. It could be higher or lower, dependent upon the circumstances ADR Acronym for alternative dispute resolution. ADR Class Life (US tax based) Asset depreciation range class life—the system by which assets were depreciated for US federal income tax purposes prior to the enactment of the Accelerated Cost Recovery System (ACRS) in 1981. ADR system (US tax based) The system by which assets were depreciated for US federal income tax purposes prior to the enactment of the Accelerated Cost Recovery System (ACRS) in 1981 Advance Lease Payment One or more periodic lease payments, usually first and last, which are paid at the inception of the lease in lieu of or in addition to a security deposit. Advance Payments One or more lease payments required to be paid to the lessor at the beginning of the lease term. Lease structures commonly require at least one payment to be made in advance. Adverse Possession (Real Estate) The claim to ownership of real estate created by occupying it without challenge for a specified period of time (e.g. 10 years). Advocat A lawyer in the judicial system of France. AELA Acronym for the Australian Equipment Lessor Association. Affidavit A statement by a person sworn to before a notary public Afghani The primary monetary unit of Afghanistan AFINA Acronym for the Association of Swedish Finance Houses After Market 1. In vehicle leasing, the market for accessories and other items added to a vehicle once it leaves the manufacturer. 2. The market for a security immediately after its initial public offering After-Acquired Property Clause 1. a provision in a security agreement that automatically gives the creditor a security interest in the "property of the debtor acquired after the date of the security agreement. 2. Colloquially, the statement in a financing statement filed under Article 9 of the Uniform Commercial Code of the United States which gives such filing creditor a security interest in all of the debtor’s property or other interests, now owned or hereafter acquired. After-Tax Cost of Capital The cost of capital, usually expressed as a percentage representing an interest charge on funds borrowed or paid to debt investors to acquire the capital, after any tax deductions allowed for such borrowings or payments have been taken into account. After-Tax Yield The yield of an investment after payment of taxes applicable to or generated by the investment. Agence d’Evaluation Financiere (French) The French corporate security rating agency, similar to Moodys or Standard and Poor in the U.S. Agency The legal relationship that exists between a principal and agent, whereby the agent has legal authority to act for and represent the principal in dealing with third parties. Agent A person who has legal authority to act for and represent another party in dealing with third parties. AGFL Acronym for the Association for Governmental Leasing and Finance. Agreed Residual In an open-end lease, the residual value specified by the parties as being the residual for purposes of determining the existence of a deficiency or surplus at the end of the original lease term. The agreed residual may or may not reflect the parties’ actual estimate of future fair market value of the leased equipment at the end of the lease term. (e.g. it can artificially be inflated to effect a lower lease payment during the lease term and a balloon payment at the end. Moreover, if a lessee defers maintenance that it should have performed during the lease term, the resultant decrease in equipment value at the end of the lease term will create a deficiency liability that recovers that deferred maintenance cost). All-Risk Insurance An insurance policy that covers an insured against loss from any peril other than those specifically excluded by the terms of the policy. Alternative Dispute Resolution The process of using non-judicial means, such as arbitration, mediation, mock juries, and the like, to resolve disputes between two or more parties. Alternative Minimum Tax (AMT) (US tax based) (1). A parallel tax calculation in the federal income tax code that is designed to insure that a profitable business and certain individuals pay at least some tax. The alternative minimum tax calculation is made and compared to the regular tax calculation and then the higher of the two taxes is paid. (2) An alternative, separate tax calculation based on the taxpayer's regular taxable income, increased by the taxpayer's preference for the year. The resulting amount is called the alternative maximum taxable income (AMTI). After certain exemptions and offsets, the taxpaying entity determines their AMTI and is required to pay the larger of the regular tax or alternative minimum tax. Among the preferences that can increase the taxpayer's AMTI is the accelerated portion of depreciation, thereby making it more likely for a taxpayer that buys equipment to be subject to the AMTI rather than regular tax. Amalgamation A merger of businesses. American Arbitration Association A U.S. based organization which provides rules, references and resources in connection with disputes in which the parties have agreed to arbitration in accordance with rules established by this organization. American Automobile Leasing Association A national U.S. trade association for vehicle lessors, particularly fleet lessors. American Bankers Association The major bank trade association in the U.S. American Chamber of Commerce (U.S. based) General business organization. American Law Institute (acronym – ALI) A U.S. based legal think tank comprised of lawyers, judges and law professors who are responsible for the various "Restatements" of the law, such as "Restatement of Torts"; it also plays a role in the maintenance of the Uniform Commercial Code (UCC). Amortization 1. The process of reducing a debt obligation through periodic payments which usually include both an interest a principal payment. 2. In accounting and/or tax, the spreading of the cost of an asset over its useful life for financial statement and/or tax purposes. Amortize To apportion the interest and principal components of a loan over the time of the loan according to its periodicity. Andean Community A global regional economic cooperation organization comprising the countries of Bolivia, Colombia, Ecuador, Peru and Venezuela. Annual Depreciation Allowance The amount a government taxing authority allows an entity (usually a business) to offset against taxable income as a result of investing in particular capital goods. Annual Percentage Rate The annual interest charge on an obligation, including the resulting of all aggregate compounding. Annual Return The annualized return on an investment, usually expressed as a percentage Annualize An item converted to its yearly equivalent. APB Acronym for the Accounting Principles Board. APEC Acronym for the Asian Pacific Economic Cooperation forum Appraisal Clause A clause in a lease which requires that the equipment be appraised and establishes the methodology of the appraisal process; appraisals are usually done in connection with the exercise of a purchase option. Appraisal/Appraisal Value A formal or semi-formal evaluation of the value of a specific item of property, usually as conducted by a person with expertise or certification of valuation with respect to such property. Appreciate/Appreciation An increase in value/value of an asset over time. Appreciation Rate The rate at which an asset increases over a specific period of time, usually expressed as an annualized percentage (%). Appropriation In municipal leasing, the inclusion of the scheduled lease payments in the municipalities' (or other political subdivision's) budget for the next budget cycle. APR Acronym for annual percentage rate. Arbitration An out-of-court process of achieving a binding resolution of a dispute between two or more parties by a third party or parties selected pursuant to contract, statute or otherwise. Much like a judge, the arbitrator issues a ruling which is binding except in very limited circumstances. Arbitration Clause The provision in an agreement or contract which provides for private dispute resolution outside of formal court procedures. Arm’s Length Transaction The type of transaction in which parties are dealing with each other without any concessions of the type that might be given a family member, corporate or business affiliate, or other related party; a transaction at fair market value. Arrangement A repayment plan negotiated with a financially troubled business' creditors as a group without the use of bankruptcy proceedings. Arrearage Amounts unpaid and past due. Arrears 1. Past due accounts. 2. Payments (Lease) due or made at the end of a specific time period. Articles of Association The charter document or constitution of a not-for-profit corporation, which, when properly filed with the appropriate state agency, lead to the grant of a franchise from the state to conduct activities as a legal corporate entity. Articles of Incorporation The charter document or constitution of a for-profit corporation, which, when properly filed with the appropriate state agency, lead to the grant of a franchise from the state to conduct business as a legal corporate entity. As Is A term of purchase of a good in its current condition. Asialease The shortened name for the Asian Leasing Association. Asian Development Bank A regional development bank supported by a group of Asian nations Asked Price The price at which an offer to sell is made. Assessed Value The value of property for the purpose of assessing a tax against it; assessed value may or may not be actual assessed value. Assessment The imposition of a tax against an item of property. Assessor The public official who determines the value of property for the purpose of assessing a tax against it and who may also usually be responsible for collecting that tax. Asset An item of value. Asset Management The process of appraising, tracking, evaluating, inspecting, selling, re-leasing and otherwise managing equipment in a lease portfolio. Asset Manager/Asset Management Company A person who administers or a company that provides as a service the process of appraising, tracking, evaluating, inspecting, selling, re-leasing and otherwise managing leased equipment. Asset-Based Financing/Lending Financing provided upon the premise that the assest acquired by the financing provides sufficient collateral and security for the advance of funds. Assign/Assignment (1) Transfer of an interest, usually used in connection with the transfer of an interest in an agreement. (2) To transfer or exchange future rights. In leasing, the right to receive future lease payments is usually transferred to a funding source, in return for up-front cash. The up-front cash represents the loan proceeds from the funding source, and is equal to the present value of the future lease payments discounted at the leasing company's cost of borrowing. Assigned Lease A lease which has been transferred from the one lessor to another; the term is usually used in connection with the transfer from the orginating lessor to a funding source. Assignee A party who receives an assigned interest, usually in connection with the transfer of an interest in an agreement. Assignor A party who transfers an assigned interest, usually in connection with the transfer of an interest in an agreement. Associacao Brasileira das Empresas de Leasing The leasing industry association for Brazil. Associacao Portuguesa de Empresas de Leasing The national equipment leasing association of Portugal. . Associacion Espanola de Leasing The national equipment leasing association of Spain. Associacion Mexicana de Arrendadoras Finanieras AC The national equipment leasing association of Mexico. Association Belge des Enterprises de Leasing The national equipment leasing association of Belgium. . Association for Government Leasing and Finance The U.S. equipment leasing association for lessor’s specializiing in federal and municipal government leasing Association Francaise des Societes Financieres The national equipment leasing association of France Association Luxembourgeosie des Societes de Leasing The national equipment leasing association of Luxembourg. Association of Greek Leasing Companies The national equipment leasing association of Greece. Association of Leasing Companies of the Czech Republic The national equipment leasing association of the Czech Republic. Association of Norweigan Finance Houses The national equipment leasing association of Norway. Association of Swedish Finance Houses The national equipment leasing and finance industry trade association of Sweden. Associazione Italiana Leasing The national equipment leasing association of Italy. Assume 1. To legally undertake performance of another party’s obligation. 2. (US bankruptcy based) The court-approved action of a bankruptcy trustee which makes a pre-petition lease or executory contract an obligation of the bankruptcy estate Assume or Reject (US bankruptcy based) The bankruptcy trustee’s options, and the decision that must be made, with respect to executory contracts and unexpired leases. Assumption The agreement to legally undertake performance of another party’s obligation At Risk Rules (US tax based) Specific provisions in the Internal Revenue Code which require that a party seeking to claim certain benefits under the tax code, such as interest deductions and depreciation, must be "at-risk" for certain specified amounts in relationship to such desired tax benefits Attachment 1. The legal process by which property is seized, usually for the purpose of being converted to cash for the satisfaction of debt. 2. In a secured transaction, a necessary step in the creation of a security interest, which requires that (1) the collateral must be in the possession of the secured party pursuant to an agreement of the parties, or the debtor must have signed a security agreement which contains a description of the collateral; (2) value must have been given by the secured party; and (3) the debtor must have rights in the collateral. Audit Generally, a review of a person/company’s financial records by an outsider, such as a chartered accountant, certified public accountant, tax authority, or other inspectors, for the purpose of verifying their accuracy. Internal audits are those typically conducted by a company’s in-house accountants or equivalent staff personnel. Audit Trail The records which allow the tracing of a financial transaction from its inception to its conclusion through the records of a business. Establishment of a clear audit trail is necessary for proper verification of financial record accuracy. Audited Statement A financial statement which has been generated or verified as a result of an external audit. This is the most formal, and presumably most accurate, type of financial statement (Typically done by an outside independent accounting firm or other applicable agency). Auditor A person who conducts a review of financial records for the purpose of verifying their accuracy. An auditor can be a chartered accountant, certified public accountant, a tax authority representative, or a member of a business’ in-house staff. Auditor’s Report The report generated by an auditor as a result of an audit, which typically contains comments about the manner in which the audit was conducted, the standards by which it was made, any irregularities found, possible suggestions for improvement, and, in the case of tax audits, any assessments, refunds, fines, penalties and the like. The auditor’s opinion is part of the auditor’s report in an accounting audit. Australian Equipment Leasing Association The national equipment leasing association of Australia. Australian Finance Conference The national finance companies’ association of Australia Australian Fleet Lessors Association The national fleet lessors’ of Australia. Authority The legal ability to act on behalf of and thereby bind another (e.g. the president of a company has the authority to bind the company, an agent has the authority to bind its principal, etc.). Authorized Shares Shares of a company’s stock that have been properly approved for sale or other distribution but which may or may not have been issued as of yet (i.e. shares may be authorized but not yet issued). Authorized Signature (1). The signature of a person who has the legal ability to sign on behalf of another or a company and to thereby legally bind the other person or organization. (2) (Leasing based) A signature by a person authorized by a company to obligate the company on a long-term lease. An authorized signer will usually be substantiated by the Corporate Resolution that specifies who can sign and what his/her responsibilities may be. Automatic Debit Transfer A transfer of funds, usually on a periodic basis, directly from a debtor’s bank account to a creditor’s bank account, pursuant to a standing authorization given the creditor by the debtor. These pre-authorized transfers speed the creditor’s collection of funds and avoid the inherent risks and delays of waiting for the debtor to write and deliver a check every month (or other period). Automatic Stay (US bankruptcy based) The injunction that occurs immediately upon the filing of a voluntary petition in bankruptcy and that prevents creditors and other parties from, among other things, taking further action to collect any debt or other obligation owed them by the filing party. Aval (Continental Europe based) A guarantee of a bill of exchange or promissory note. Average Life Generally, the average useful life of an asset for tax or accounting purposes Award The decision and command that one party pay another party a compensatory amount as a result of litigation, arbitration or some other dispute resolution process. About Us | Services Offered | Financing Available | Equipment Financed | Financing Advantages | Application Center | PDF Download | Vendor Login | Industry Dictionary | Career Opportunities | Information Request | FAQs | Partner Alliance Program | Site Map | Home