A provision that can be found on some bonds allowing the bondholder to exchange their debt into common stock.

The Capital Adequacy Ratio (CAR) or Capital-to-Risk weighted Assets Ratio (CRAR) is a measure of a bank’s capital. It is expressed as a percentage of a bank’s risk weighted credit exposures. It is used to protect depositors and promote the stability and efficiency of financial systems around the world.

A cost of funds index or COFI is a regional average of interest expenses incurred by financial institutions, which in turn is used as a base for calculating variable rate loans.

A long-term security yielding a fixed rate of interest, issued by a company and secured against assets are known as debentures.

Debt consolidation is a form of debt refinancing that entails taking out one loan to pay off many others.

An escrow account is a temporary pass through account held by a third party during the process of a transaction between two parties. Definition: An escrow account is a temporary pass through account held by a third party during the process of a transaction between two parties.

The loan-to-value (LTV) ratio is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased. The term is commonly used by banks and building societies to represent the ratio of the first mortgage lien as a percentage of the total appraised value of real property.

A promissory note is a legal instrument in which one party (the maker or issuer) promises in writing to pay a determinate sum of money to the other (the payee)

The transfer of real property that takes place when a mortgage is fully paid off and the land is returned to the owner free from the former debt.

The capital of a business which is used in its day-to-day trading operations, calculated as the current assets minus the current liabilities.