Check 21 Act – Explained

by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry

Update Table of Contents What is the Check Clearing For The 21st Century Act (Check 21)?How Does the Check 21 Act Work?Check Truncation Substitute Checks Benefits of Check 21 to the Check Depositors and Writers What is the Check Clearing For The 21st Century Act...

Overnight Rate – Explained

by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry

Update Table of Contents What is the Overnight Rate?How Does the Overnight Rate Work?Basics of the Overnight RateEffects of the Overnight Rate What is the Overnight Rate?The overnight rate is the interest rate that credit institutions charge each other when lending...

Predatory Lending – Explained

by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry

Update Table of Contents What is Predatory Lending?How Does Predatory Lending Work?Predatory lending vs Redlining What is Predatory Lending?Predatory lending involves immoral activities that a lender carries out to coerce, influence, and push a borrower for a loan...

Adjusted Balance Method – Explained

by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry

Update Table of Contents What is the Adjusted Balance Method?How is the Adjusted Balance Method Used?Example of the Adjusted Balance MethodAdvantages of Adjusted Balance MethodAcademics Research on Adjusted Balance Method What is the Adjusted Balance Method?The...

Acceleration Clause (Loan Agreement) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry

Update Table of Contents What is an Acceleration Clause?How Does an Acceleration Covenant Work?How an Acceleration Covenant Works What is an Acceleration Clause?An acceleration covenant or an acceleration clause refers to provision used by a lender to demand repayment...

Set Off Clause – Explained

by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry

Update Table of Contents What is a Set-Off Clause?How Does a Set-Off Clause Work?Lending Set-Off ClauseManufacturing Set-Off ClauseSet-Off Clause Advantages What is a Set-Off Clause?A set-off clause is a legal provision that allows a lender to take the deposits of a...