Summary of European Investment Bank
A multilateral development bank established in 1958 by the Treaty of Rome for the purpose of assisting in the balanced growth of the European economic community (read this and related legal terms for further details) (EEC). The bank grants long-term loans […]
Summary of Special Drawing Rights
An artificial currency unit created by the international monetary Fund (read this and related legal terms for further details), or IMF, to argument international reserves. The expansion of world trade following World War II necessitated an expansion in […]
Bank For International Settlements Summary of Bank For International Settlements An international bank owned and controlled by the central banks of twenty-four European and five non-European central banks. The BIS was formed at the Hague Conference of 1930 in response to pressures for the […]
The system by which a government regulates possession of and dealings in foreign exchange. The principal objective of exchange control is to allocate foreign exchange to necessary imports and expenditures. Normally, the finance ministry or central bank is invested with the authority to issue […]
Summary of Reserve Currency
The currency of a major trading national, widely accepted in international transactions and regarded as stable, that is held by the central banks or monetary authorities of other nations as a form of collateral for their own currency. The use of reserve […]
Also known as the re-discount rate, the rate of interest charged by the Federal Reserve to member banks for advances. The rates are set every fourteen days by the regional Federal Reserve banks upon approval of the Board of Governors of the Federal Reserve system.
The discount rate is a p…
An arrangement in which an insurance underwriter contractually spreads its policy risks with other underwriters, sharing the premium with them. For example, an underwriter may issue a policy for fifty million dollars to cover the loss of a ship; being unwilling to assume the full risk of loss, […]
Each currency affiliated with the EUROPEAN monetary system (read this and related legal terms for further details) is assigned a value in terms of the European currency unit (ECU). The central rate is the range within wh…
A condition in which a nation maintains its reserves in a currency convertible into gold rather than in the metal itself. Since August 15, 1971, the U.S. dollar has not been freely convertible into gold by foreign central banks; it therefore does not qualify as a reserve currency for a nation on a g…
In insurance industry usage, funds set aside to satisfy claims which have arisen but not yet paid. Such reserves fall into two categories: (11 Those arising from claims made upon the insurer but not yet actually paid; and (2) claims which have been incurred but not yet reported. In the latter case, …
Summary of Risk Management
The application of management techniques to identify, quantify, and respond to threats of loss or damage to a firm's assets. Such threats may arise from random events such as fire, explosion, theft, and acts of nature, or from the conscious efforts of external […]
The product of an international conference on monetary and economic affairs held at the end of World War II, from which resulted the International Monetary Fund and the World Bank; the term is used most commonly in reference to a program for world monetary affairs that emerged from the conference an…
Regulation of Crowdfunding in the United States Financial Regulation of Crowdfunding Intermediates in the United States In relation to the crowdfunding intermediary provisions in Title III of the JOBS Act: Crowdfunding issuers. Title III of the U.S. JOBS Act amends Section 4 of the […]
The successor to the European payments Union (read this and related legal terms for further details), the EMCF was established by the European Monetary Agreement of 1958 as a vehicle to enhance monetary cooperation among…
The principal monetary authority of a nation. In most commercially developed nations the central bank issues the currency and acts as banker for the government and the nation's commercial banks. By setting the rate at which it will lend money to commercial banks, the central bank […]
An agreement between central banks to lend each other prearranged sums of each other's currency. This arrangement is designed to permit a central bank to intervene in the foreign exchange market so as to retard speculative pressures on its currency. Such agreements are generally bilateral and us…
Summary of European Monetary System
A mechanism established by the European Communities to mitigate exchange rate fluctuations among the members and establish a zone of "monetary stability in Europe."The EMS is, in part, a fulfillment of the 1970 Werner Report (read this and […]
Balance Of Payments Summary of Balance Of Payments
The sum owed to or by a nation as the result of its international transactions during a given time period, usually one year. The balance of payments is calculated by subtracting the nation's total payments to foreigners from total […]
Summary of Accommodation Line
The acceptance by an insurance company of substandard risks as an accommodation to a particular broker who has previously provided, and is expected to continue to provide, attractive underwriting business.
(Main Author: William J. Miller)
Description […]
Summary of Antedate
The act of dating a bill of exchange or other instrument with a date earlier than the date of execution. For example, a draft dated December 1, but actually drawn on December 5, would be antedated. Antedating has no effect upon the negotiability of an instrument.
(Main […]
Summary of Cashier's Check
A bank check, i.e., a check drawn by the bank on itself. It constitutes a primary bank obligation and is almost universally acceptable in business transactions.
(Main Author: William J. Miller)
Resources See Also Check
Summary of Acceptance
A bill of exchange or draft that has been accepted upon presentation to the drawee; the acceptance is created upon presentation by stamping or writing the word accepted across the face of the instrument, accompanied by the signature of the drawee. Instruments on which […]
Securities Regulation: Main Elements The coverage of Securities Regulation includes the following element(s): Scope of the Securities Act of 1933 For detailed information on this issue, please read the corresponding entry. References See Also Business Law (in international or comparative law) […]
Summary of Beneficiary
The party named in a letter of credit as authorized to draw bills of exchange for acceptance by the issuing bank.
(Main Author: William J. Miller)
Spanish Translation of beneficiary This is the legal translation of English to Spanish in relation to […]
Summary of Adventure
In marine insurance, any maritime enterprise. The term is most commonly used to denote the risks undertaken by a vessel and her cargo in the course of transiting the seas.
(Main Author: William J. Miller)
Description of Adventure Resources See Also Joint […]
Summary of Constructive Total Loss
In marine insurance, a loss where cost of repair or recovery would exceed the value of the property were it to be saved or repaired. In British usage, an insured cannot claim a constructive total loss unless the costs of rehabilitation exceed 100 percent […]
Summary of European Currency Unit
The European Monetary System is considered here.
(Main Author: William J. Miller)
European Currency Unit and the European Union Resources See Also ECU
Summary of Correspondent Bank
A bank that acts as the representative of another bank in a given transaction. As a rule, correspondents have sums on deposit with each other for the purpose of settling the transactions of the other bank.
(Main Author: William J. Miller)
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Hello Summary of Advice
Also known as advice of fate, a document issued by a commercial bank to acknowledge receipt of funds or instruments from a third party or to confirm performance of previous instructions. For example, a bank would send an advice to a customer confirming the receipt of […]
Retirement Planning Contents of Retirement Planning Contents of this subject matter include: Overview of the financial services industry Types of superannuation funds Regulatory control of superannuation funds Contributions to funds Taxation of funds Payments from superannuation funds Self […]
Summary of Blocked Account
Currency held in a bank account in an exchange control country by nonresidents. Such currency cannot be transferred out of the country in which it is held without permission from the government
(Main Author: William J. Miller)
Description of Blocked […]
Balance Of Trade Summary of Balance Of Trade
The sum total, in monetary terms, of a nation's merchandise (i.e., "visible") exports less the value of merchandise imports during a given time period, usually one year. Merchandise imports and exports are contrasted with trade in […]
Summary of Draft
A written, unconditional demand upon a named party to pay a specified sum of money at a prescribed date. The person who makes the demand for payment, i.e., the person who prepares the draft, is known as the drawer or maker of the instrument; the party of whom payment is […]
Contents of Finance Law Contents of this subject matter include: Introduction to secured finance The securities legislation in a number of jurisdictions Considerations in taking security Loan syndications Trading loan assets Alternatives to secured finance Asset finance Acquisition finance […]
Summary of Binder
A temporary, often abbreviated document evidencing that insurance coverage has been effected. A binder is an interim measure until the full policy is prepared.
(Main Author: William J. Miller)
Binder in International Trade Meaning of Binder, according to the […]
Securities Markets Law
Summary of Aggregate
The maximum exposure borne by an insured party under a contract of insurance during a given time period, usually one year. If, for example, a policy provides for a deductible of $ 1,000 per occurrence with an aggregate of $5,000, then once the insured party has paid out […]
Summary of Book
The portfolio of insurance coverage written by an underwriter.
(Main Author: William J. Miller)
Book truck in Law Libraries The follow definition of Book truck is of use in law library research: A cart used to hold books before they are re-shelved, and is also used […]
In marine insurance contracts, either an exemption from or limitation to the policy, or a promissory warranty whereby the insured agrees to do, or not to do, some particular act. Failure to adhere strictly to a promissory warranty may invalidate a contract of insurance, whether or not the […]
Any bill of exchange (read here for further details) not accompanied by documents, such as invoices, bills of lading, et cetera. See direct collection….
A document issued by a public warehouseman, acknowledging receipt of and title to specific merchandise held in the warehouse. Such receipts are issued in accordance with the provisions of the U.S. Uniform Commercial Code, where applicable, or the U.S. Uniform Warehouse Receipt Act. Warehouse […]
A guarantee issued by a bank to a firm as security for the actions of a third party; in the event the third party does not perform specified acts (usually the payment of obligations) within a prescribed period, the beneficiary of the credit may unilaterally draw upon the letter of credit in […]
A general term relating to any of several documents customarily associated with the international shipment of merchandise. Among these documents are a bill of lading (or Air Waybill), Certificate Of Origin, customs or consular INVOICE, insurance certificate, DOCK receipt (qq.v.), and inspection […]
World Bank program designed to assist developing nations with balance of payments problems resulting from correctable internal economic patterns. The program provides hard currency loans conditional upon agreement by the beneficiary country to undertake certain specified corrective measures, […]
An association of fifty U.S. insurance companies that operates in conjunction with the EXPORT-IMPORT bank (read this and related legal terms for further details), or Eximbank, to insure commercial risks associated with e…
Marine insurance policy issued to cover various unspecified voyages over the life of the policy. An open policy is issued to a firm engaged in extensive shipping transactions, the details of which are probably unknown at the time the policy is issued; usually, the policyholder declares his […]
The risk borne by an exporter that his foreign customer may be unable to pay for merchandise imported under open account terms. Commercial risk is contrasted with political risks, which arise from governmental actions and are unrelated to the financial condition or credit-wor- thiness of the […]
An exchange restriction, imposed by governmental authority, that forbids the unlicensed purchase of bills of exchange, currency, or negotiable instruments denominated in a foreign currency. The object of this measure is to prevent transmission of foreign currency reserves out of the country. […]
A loan repayable by a foreign borrower in a Soft Currency (read this and related legal terms for further details). Such loans usually have been the product of long-term sales to countries without hard currency repayment …
In Collateralization The underlying commercial reason for Thresholds is that often parties will be willing to take a certain amount of credit risk to each other (equal to the Threshold) before requiring collateral to cover any additional risk. Banks, in particular, are in the business of […]