An automated clearing house (ACH) is an electronic funds-transfer system run by the National

Automated Clearing House Association (NACHA). This payment system deals

with payroll, direct deposit, tax refunds, consumer bills, tax payments and many more
payment services.

An automated teller machine (ATM) is an electronic banking outlet that allows customers to
complete basic transactions without the aid of a branch representative or teller. Anyone with
a credit card or debit card can access most ATMs. The first ATM appeared in London in 1967

A banker's acceptance (BA) is a short-term debt instrument issued by a company that is

guaranteed by a commercial bank. Banker's acceptances are issued as part of a commercial
transaction. These instruments are similar to T-bills, are frequently used in money market
funds and are traded at a discount from face value on the secondary market, which can be an
advantage because the banker's acceptance does not need to be held until it matures.

the maximum amount of money a bank can lend to a single person or business
The legal lending limit is the maximum dollar amount that a single bank can lend to a given
borrower. This limit is expressed as a percentage of an institution’s capital and surplus. The
limits are overseen by the Federal Deposit Insurance Corporation (FDIC) and the Office of the
Comptroller of the Currency (OCC)

People or organizations that go bankrupt do not have enough money to paytheir

debts. who has been declared bankrupt by a court of law
Bankruptcy is a legal term for when a person or business cannot repay their outstanding debts.
The bankruptcy process begins with a petition filed by the debtor, which is most common, or
on behalf of creditors, which is less common. All of the debtor's assets are measured and
evaluated, and the assets may be used to repay a portion of outstanding debt.
A bad debt is a sum of money that has been lent but is not likely to
be repaid. a debt that cannot be recovered.
Bad debt is a loss that a company incurs when credit that has been extended to
customers becomes worthless, either because the debtor is bankrupt, has financial
problems or because it cannot be collected. It is expensed on the income statement.

A company's board of directors is the group of people elected by

its shareholders to manage the company.
A board of directors (B of D) is a group of individuals, elected to represent shareholders.
A board’s mandate is to establish policies for corporate management and oversight,
making decisions on major company issues. Every public company must have a board
of directors. Some private and nonprofit organizations also have a board of directors.

Capital is a large sum of money which you use to start a business, or

which you invest in order to make more money.
Capital is a term for financial assets or their financial value (such as funds held in deposit
accounts), as well as the tangible factors of production including equipment used in
environments such as factories and other manufacturing facilities. Additionally, capital
includes facilities, such as the buildings used for the production and storage of the
manufactured goods. Materials used and consumed as part of the manufacturing
process do not qualify.

What is a 'Cap'
A cap is an interest rate limit on a variable rate credit product. It is the highest possible
rate a borrower may have to pay and also the highest rate a creditor can earn. Interest
rate cap terms will be outlined in a lending contract or investment prospectus.