Tony Williams,  Loan Technologist

Term loan financings that offer lower interest rates to qualified borrowers for specific types of projects. The lower interest rates usually derive from the tax exempt
status of the local municipality or development authority that will issue the underlying bonds in the transaction. Proceeds from the financing are expected to foster some commercial purpose that will benefit the local community. Examples of this type of financing are Industrial Revenue Bonds, Industrial Development I3onds,
and Variable Rate Demand Bonds.
 

See Term Loan

A long term commitment by the bank to extend a maximum amount of credit to the borrower(s) for a specified period of time under the terms and conditions set
forth under a credit agreement. Funds arc usually drawn down within a short time of closing (or in the case of an RC/TL, converted from a revolver) and subse-
quently repaid according to a predetermined amortization schedule. Any funds repaid (whether scheduled or unscheduled) can NOT be reborrowed. The repayment schedule can be structured in any number of ways, including straight line amortization, a "balloon" payment, etc.
 

Pre-established limit or reasonability checks to trigger human review of system results.
 

A fee which increases or decreases incrementally or non- incrementally according to a pre-set schedule tied to dates, dollar amounts, percentages, etc. For example, an incremental tiered fee could require a 0.5% fee for the first $1 million in outstandings and a 0.4% fee for all outstandings over $2 million. A non-incremental fee tiered fee would be similar, except that once the $1 million threshold were achieved, all outstandings (i.e. including the first $1 million) would be priced at the 0.4% rate.

Fee charged to the borrower based on the total commitment amount, typically paid quarterly, in advance.
 

The group or department within the bank responsible for raising funds to support its operations and for managing its interest rate risk. These activities are wide
ranging and include such functions as issuing certificates of deposit, selling the bank's commercial paper, raising funds in the LIBOR market, etc.
 

An abbreviation for the Uniform Commercial Code, which is the body of law that governs commercial transactions within the United States (with some exception for the State of Louisiana).
 

A document (also known simply as a "UCC Filing") filed in the appropriate jurisdiction to perfect a lien on assets of any kind. Once filed, the lien becomes perfected after 90 days; the filing must be updated every five years in order to remain in effect.
 

The risk associated with the portion of a commitment that is not being used by the borrower(s). This amount not drawn but committed by the bank represents
potential exposure to a company, industry, etc. if it were to be utilized,
 

Fee charged to the borrower on the unused portion of the total commitment. It is usually paid quarterly, in arrears.
 

See Syndication Fee

The portion of a facility that has been either drawn down in loans or used for the issuance of SBLCs.
 

Fee charged to the borrower on the used portion of the total commitment. It is usually paid, quarterly, in arrears.
 

A fee that changes over time because one or more of its components are variable (e.g. a 1% commission on Standby Letters of Credit will produce a variable fee
because SBLC outstandings will vary over time).
 

See Floating-Rate Loan.

Term meaning "your account with us" designating an account maintained with a domestic bank by a bank located in a foreign country. Vostro accounts are
denominated in the domestic bank's currency.
 

The bank sometimes funds a portion of a match funded loan with an overnight index rate in order to avoid a potential loss due to break funding when the asset is sold. The warehouse amount is that portion of the match funded loan that is funded by the index rate.
 

An electronic means of transferring funds from one financial institution to another.

General Ledger accounts used to control, on a very short term basis, debit and credit accounting entries that arc made to facilitate the daily workflow.