TRANSLATION
GLOSSARY
C
CADASTRAL VALUE
It is the value for tax purposes of farms and rural and urban buildings, as
determined by the Tax Administration.
CALL MONEY
With call money banks make short-term loans among themselves, or with other
financial institutions.
CAP
Maximum interest rate permitted within the terms of a loan in the medium or long
term adjustable rate.
CAPITAL INVESTMENT COMPANY
Juridical person who operates with securities and documents issued by companies
that require long-term resources and whose activities are mainly related to the
objectives of national development planning.
CAPITAL PARTNER
Partner characterized for contributing to the concerning company capital to
participate in the future distribution of profits.
CAPITAL RESERVE
Separation of money from the profit, so it is no longer distributed to shareholders
and becomes part of the company’s equity.
CAPITALIZATION
It is the process to determine the future value of a payment or series of payments
when the compound interest is applied.
CAR INSURANCE
Insurance compensating damages caused by the use or circulation of vehicles. In
most counties this type of insurance has two modes: the compulsory insurance,
which covers any personal or material damages caused to third parties within the
limits set by law, and voluntary insurance, which covers the amount exceeding from
the compulsory insurance, and other risks (liability, theft, fire, etc.)
CARDHOLDER
Bank client that was awarded with a revolving credit, which can make cash
withdrawals through a plastic and is considered as user of the Credit Card service.
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TRANSLATION
CASH
Physical money (tangible) in the form of banknotes or coins. Generally, a cashsettle transaction excludes the granting of any form of credit (Check, Credit Card or
Notes). A cash payment is not synonymous with a down payment. Indeed, the down
payment need not be physical cash. However, people often confuse both terms.
Term used to designate both notes and coins are of legal tender as the sight
deposits and investments in short-term financial assets.
CASH SUPPLY
It is the number of notes and coins in circulation, plus sight deposits and term
deposits in national currency, existing in the economy.
Monetary magnitude which includes cash held by the public, comprising fiduciary
circulation, notes, and coins, except the housing stock in the credit system, plus
private sight deposits in the credit system, plus other financial institutions regular
deposits.
CASHIER’S CHECK
The ones issued by the credit institutions on their own corporate names. These
checks should always be nominative and are non-negotiable.
CENTRAL BANK
It is the bank owned and/or controlled by the State which acts as monetary
authority of a country; owns and manages the international reserves and has
liabilities as sight deposits in other banks and the country’s public or private
entities.
Public institution whose primary purpose is to propose and implement the monetary
and credit policies of a country aimed to contribute with the good functioning of the
national economy; constitutes the financial center of the country and is usually
controlled wholly or partially by the government, although in some cases is
independent. The main functions of a central bank are: maintain and regulate the
country’s monetary reserve; issue currency exclusively; set interest rates applied in
the monetary system; regulate money supply and credit volume; act as bank of
banks and clearing house; control commercial banks to support the government’s
monetary policy; serve as government representative to international financial
institutions; perform open market operations; and public debt management;
exceptionally performs ordinary banking business.
In Panama there is no institution considered as Central Bank.
CERTIFIED CHECK
The one on which the institution certifies that it has sufficient funds to pay it. The
drawer’s bank signature on the check, serves as a certification.
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TRANSLATION
CHARGE
An obligation to do or allow something that a person in responsible for. Charge
made to an asset as a way of ensure payment in due time.
CHECK
Negotiable instrument, a pure and simple payment order (without any condition)
drawn against the bank where the drawer has funds deposited into his checking
account or is authorized to overdraw.
Credit instrument issued by a credit institution, for the person authorized for that
purpose, containing the unconditional order of paying an amount of money in sight,
to bearer or to the order of a particular person. The payment order can be order or
bearer.
CHECK DRAWEE
Name of the credit institution duly authorized in accordance with the Law of Credit
Institutions and Auxiliary Organizations; this law provides that banks are allowed to
receive deposits in checking accounts and draw checks against them accordingly.
CHECK, PAYMENT of
Cash delivery made by the drawer bank to the legitimate holder of the check
against the document itself. If is an order check, the holder must sign “as receipt”
on it; and if it is a bearer check this requirement is not mandatory. The drawee
bank may not refuse to pay a check if there is not a good reason, even if the
statutory remittance period is over, if there are sufficient funds, the drawee bank
must pay it at its remittance.
CHECK, PLACE OF ISSUE of
Requirement met by the entry of the place where the check is issued. It is not an
essential requirement but it is very convenient in order to know the statutory period
for submitting checks, as it varies depending on the period in which it is issued and
where it will be paid. If necessary, it is presumed that the check has been issued in
the place where the drawer has his main residence; if having several places of
issue, is taken as good the foreground and the others will be taken as not posted.
CHECK, PLACE OF PAYMENT of
Is the second of the three non-essential requirements of checks. When it is omitted,
it is understood that it should be cashed in the place where the drawer institution’s
main establishment is. If it mentions several payment places, it will be understood
that it should be cashed on the foreground or at the main offices.
CHECK, PROTEST of
Act made only because of non-payment of the check. Should be made before to the
drawee bank which denies payment at the address stated on the check and on the
date of remittance, which should be before the statutory remittance period is over.
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TRANSLATION
In the case of partial payment, the protest would be for the unpaid amount. The
protest of the check can be done in accordance with all the formalities of the protest
of the bill of exchange, this means, before a Notary Public of Certified Public Broker;
but the protest of the check can be replaced by a) the annotation made by the
drawee bank, duly signed, stating that it was remitted on time and that was not
paid totally or partly. b) the certification made by the Clearing House when the
check is timely remitted, in the sense that it was denied its whole or partial
payment.
CHECK, SPECIAL TYPES of
Among those are crossed-check, check to be credited to account, certified check,
cashier’s check, and traveler’s check.
CHECK, TIMELY REMITTANCE FOR THE DUE PAYMENT of
Law establishes the following maximum periods within the checks must be remitted:
A) within fifteen calendar days after its issuance date, if they will be paid in the
same place of issue. B) Within a month, if there are issued and paid in different
places within the country. C) Within three months, if they are issued abroad and
must be paid within the country. D) Within three months, if those are issued within
the country but must be paid abroad, as long as there is not another term provided
by the laws of the remittance place. These periods run from the day following the
issuance of the check.
CHECK REQUIREMENTS
There are nine requirements that all checks must have, six of them are essential
and three are not; in the case of lacking these three, the Law provides its omission:
Place of Issue (non-essential requirement), date of issue, drawee’s name, place of
payment (non-essential requirement), unconditional payment order, it shall state
that it is a check, name of the beneficiary or it shall state that is bearer (nonessential requirement), amount of money, and drawer’s signature.
CHECK SUBJECT TO COLLECTION
Document applied once been collected.
CHECK TO BE CREDITED TO ACCOUNT
Those in which the drawer or holder inserts the phrase “check to be credited to
account” and because of such phrase they are not negotiable or cannot be paid in
cash, but must be credited to the account the drawer has or has opened for the
holder.
CHECKBOOK
A set of checks duly customized, numbered, stapled or glued to one of their sides,
which banks give to their customers when those have a checking account to draw
against it. When those are over, they shall request for another checkbook. Book
keeping the matrices of issued shares.
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TRANSLATION
CHECKING ACCOUNT
Money in sight bank deposit, by which the depositor has the right to withdraw funds
by issuing checks and make cash and instruments remittances in order to increase
the account balance.
CIF VALUE (COST, INSURANCE, FREIGHT)
It is the market value at customs borders of a country, of imported goods, other
goods, etc. including all freight and insurance costs of the merchandise from the
exporting country, but excluding the discharging/unloading cost of the vessel,
aircraft, etc., unless it is the responsibility of the hauler.
CLAIM
Document by which a user requests someone his intervention to resolve an existing
dispute with a financial institution; may be submitted either by hearing of the
affected party, in writing, or any other suitable means, complying with the following
requirements:
I.
II.
III.
IV.
V.
Name and address of the claimant,
Name and address of the representative or person promoting in his behalf,
as well as the document evidencing such allocation,
Description of the service claimed, and concise statement of the facts
underlying the claim,
Name of the Financial Institution against whom the complaint is filed,
Documents supporting the transaction entered into between the bank and
users, and that is subject of the complaint.
The Superintendency of Banks is empowered to hear complaints filed by users of
banking services against the institutions of the Panamanian banking system,
according to what is established in Decree Law No. 9 of 26 February 1998, Law No.
38 of 31 July 2000.
CLASSIFICATION OF BUSINESS ASSOCIATIONS
General Partnership, Limited Partnership, Limited Liability Company, Limited
Company, and Joint Stock Company.
CLEANING OPERATIONS
Temporary repayment of one or more loans under a line of credit. Such repayment
is usually imposed by the lender (bank or otherwise) to the borrower in order to
verify his liquidity position and his ability to pay.
It is considered a common practice for short-term loans that are used as working
capital.
Medium-term or long-term loans, or those made to finance a specific transaction
with preset maturities, should not be subject to such requirements. When
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TRANSLATION
requested, it is understood that, after a short period, the borrower can rollover the
line of credit again.
Therefore, when what is intended is to get the final or permanent settlement of a
loan, it is unethical to make believe the borrower that it is just a cleaning operation.
Usually, it is considered an orthodox banking practice. Not all financial institutions
have implemented rigorously, resulting in detriment of their strength and corporate
image.
CLEARING HOUSE
Institution established by the banking system and administered by Banco Nacional
de Panamá to exchange checks and commercial documents by each of them,
clearing the balances resulting from the operations. Thus, banks keep in touch to
settle trade bills that represent movements of fund and/or portfolio, offsetting
swaps and paying only the differences. Decreases in this way, unnecessary cash
movements and, by eliminating direct payments, facilitates settlements and avoid
risks and losses of time.
Clearing houses canalize those documents delivered to a bank to be charged into an
open account at another bank; do not pass through the houses those documents
that affect customers of the same bank, which are subject of an internal
compensation.
CLEARING SYSTEM
Given the enormous volume of checks and money orders issued, both domestically
and internationally, has been essential that the Central Banks, or large group of
financial institutions, organize clearing centers where these instruments are offset
physically or electronically. They will simplify the cumbersome task, saving time and
efforts, through a multilateral netting of payments that allows each bank to solely
account their daily balances, the difference between the total credits and debits of
their transactions with other institutions involved in the system.
In Panama, the Clearing System operates through the Clearing House, which is an
administrative unit of Banco Nacional de Panamá, consisting of all member banks
engaged in exchange transactions and settlement of documents and monitors
compliance with the requirements for such transactions and the security of such
documents.
Law No. 20 of 22 April 1975, Organic Law of Banco Nacional de Panamá, as
amended by Law No. 17 of 9 April 1976.
CLIENT
It is the generic name given to any natural or juridical person that has a
relationship, by agreement, with a financial institution. “Client” includes: account
holders, cardholders, investors, depositors, creditors, and debtors.
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TRANSLATION
CLOSING TRANSACTIONS
A generic term that includes all transactions made with a future maturity (or
settlement date), such as stock, exchange or credit transactions.
In banks, it is primarily use in connection with the foreign exchange, and also they
are sometimes called forward operations or futures operations, which is not correct
and is a poor translation of the English term futures.
The exchange forward operations can be speculative, but in most cases they are
used to hedge a risk.
For the speculator they have the advantage of connecting them without having to
pay immediately the equivalent of the purchased or sold currency. This allows
buying or selling currencies for much more of what could be paid in cash.
Forward operations are always riskier than spot transactions. For that reason, banks
usually give a special line of credit to their customers who purchase or sell forward
currency. Some of them are required a security deposit to cover, at least, a
percentage of his forward operations.
Swap transactions are also forward operations.
CO-CREDIT CARD ISSUER
Card backed by a bank, which is issued jointly by the bank and a private company
that provides goods and services to the public. Generally, credit risk is over the
company and the bank provides financing.
COINSURANCE
The insurance underwritten by two or more direct insurers covering the same risk.
It is a system used to distribute the risk, so that each insurer is only responsible of
a portion of the total risk.
COLLATERAL
A given security against any eventuality. Something that ensures compliance with
an obligation.
COMMERCIAL BANK
It is the name given to credit institutions to secure funding from public and granting
credits, for maintaining operational business activities. For these secure and funding
transactions, commercial banking establishes lending and deposit rates.
COMMERCIAL CREDIT
Short-term credit granted to companies by their suppliers in order to finance their
purchases. It has a double perspective: to the supplier it is a credit to customers
and to the customer it is a supplier credit.
No. Ref: SG-TRAD-2010156
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TRANSLATION
COMMERCIAL PAPER
Short-term promissory notes, issued by major and recognized companies, by means
of brokers to financial entities, such as banks, mutual funds, pension funds,
insurance companies, etc.
For major issuing companies it is an inexpensive way of raising funds in capital
market without turning to bank lines.
For commercial paper buyers, it is a secure way to invest their temporary resources.
Furthermore, although promissory notes are issued for terms between 30 and 120
days, and rarely exceed 180 days, they actually represent a more liquid allocation
because when issued by first-class companies, they have a large secondary market
where those can be settled at any time.
COMMODATUM AGREEMENT or BAILMENT
It is the civil contract by which one of the parties, called gratuitous bailer or lender,
agrees to provide free of charge the use of an expendable thing, but not the
proceeds of it; and the other, called gratuitous bailee or borrower, is obliged to
restore it in full at maturity.
COMMON INVESTMENT COMPANY
A juridical person who operates equities and fixed income documents.
COMPANY
Unit producing homogeneous goods and services for which organizes and combines
the use of manufacturing factors.
An existent organization with own and suitable means to achieve a particular
economic object. Company or corporation duly formed for the purpose of producing
goods and services for sale on the market.
COMPANY MERGER
Special form of union of companies, by which one of them is extinguished by the
total transference of its equity to another existing company, whose equity is
generally credited, or rather is seen as the creation of a new company with input
from assets of two or more companies merged therein.
COMPENSATING BALANCE
Average amount of funds that a bank asks its customers or correspondent to keep
in their accounts, in return for loans granted or services provided.
Compensating balances, being usually deposited in non-bearing interest account,
represent an additional source of benefits that indirectly increase the interest rate
charged on borrowed funds, or the fees charged in transactions.
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TRANSLATION
COMPLIANCE OFFICER
The phrase brings up the question “Why Compliance? In fact, it is the company
compliance with laws, regulations, governing specific activities. It comes from the
English phrase compliance officer.
As part of the international fight against drug trafficking and money laundering, in
many countries have been required to banks to appoint a compliance officer. The
primary responsibility of this staff is to ensure that control and analysis of
operations standards are applied properly, in order to prevent the financial
institution is used by third parties (or employees) to carry out illegal operations, in
general and money laundering, in particular.
In Panama, the Compliance Officer is governed by the Superintendency of Banks in
exercise of its legal powers through Agreement No. 8 of 23 August 2000, as
amended by Agreement No. 10 of 15 December 2000.
COMPOSITION AND EXTENSION
Proposal made by the insolvent debtor requesting to his creditors a postponement
in the enforceability of his debts (extension), or to redeemed a part thereof
(composition) or, more commonly, a combination of both. This is the most common
formula used in the agreement between debtor and creditors on the court decision
of bankruptcy or insolvency.
Formal request made by an insolvent debtor to his creditors, prior to the filing of the
proceeding, for their acceptance on credit reduction (composition) or postponement
of payment (extension), or both at once. The debtor is seeking to mitigate the
immediacy of impossible payment obligations.
COMPOUND INTEREST
Interest accruing to capital that produces it, to increase it and produce in turn, new
interests.
COMPROMISE or SETTLEMENT
Adjustment, agreement, composition of a business or deal. Allowance or thing given
under adjustment, which provides a specific service for a fixed allowance.
CONCILIATION
It is the agreement reached between the parties where there is any dispute about
the application and interpretation of their rights.
CONDON
To forgive a debt or part thereof to the obligor.
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TRANSLATION
CONFIRMATION
Give one fact for sure. Action to give validity and credibility to common events or
facts.
CONSOLIDATED SUPERVISION
The Basel Committee suggests to all banking supervisory authorities (Central Banks,
Superintendency of Banks, etc.) to apply the principles of consolidated supervision
at the international level. This means, that the authorities of the country where the
parent company of a bank is set that has branches or subsidiaries in other
countries, not only are required to supervise the parent company, but also, through
it, to its units abroad.
Consolidated supervision involves, among other measures, require the parent
company of a multinational bank the submittal of consolidated financial statements
(balance sheet and profit and loss statements).
By adopting this kind of supervision, home countries take greater responsibility
regarding the suitability and viability of branches and subsidiaries established
abroad, while to some extent, reduce the responsibility and obligations of the host
country authorities.
Some countries, in order to authorize the establishment of foreign banks within
their territory require to the country of origin to apply the principle and
methodology of consolidated supervision.
CONSORTIUM BANK
Bank whose shareholders are other banks, none of which has a majority of shares
or control over its management.
The proper functioning of a consortium bank depends on the consensus of its
shareholders or the greater autonomy granted by these to top management.
CONSUMER
It is the applicant, within 5 working days, from the signing date of the contract of
adhesion that has been accepted by the “self-financing” company to become part of
the group. Also, consumer will have the same meaning as provided in the Consumer
Protection Law.
CONSUMER CREDIT
Credit granted to natural persons for purposes other than business and professional,
and may have very different fates of nature. Also, we can consider as consumer
loans the ones obtained through credit cards, as well as those granted by
department stores and hypermarkets.
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TRANSLATION
CONSUMER GOODS
Are all those goods produced by the corporation in the country or imported to
directly meet a need as food, beverages, housing, personal services, furniture,
clothing, ornaments, etc.
It is any merchandise that meets a need of the consuming public. These goods are
the opposite of productive or capital assets, which are used to produce other goods
such as factory machinery.
CONSUMERS’ COOPERATIVE
Are those in which members are associated with the common purpose of obtaining
merchandise, goods or services for them, their homes or production activities.
CONTINGENT LIABILITIES
One category of commitments or obligations that may involve the cash payment, in
the event that certain conditions are met or certain events happen. For banks, these
include, among others, endorsements, securities, letter of credits, and standby
credits. However, some liabilities are more contingent than others.
Payments hedge by a security or standby letter of credit shall be made only if the
contract terms are not met, which is an exception. On the contrary, and although
they are considered contingent liabilities, documentary credits become unavoidable
as soon as the documents are presented in order (which is the regulation; the
exception in this case, the non-use of documentary credit).
Therefore, an acceptance letter of credit is a contingent liability when issued, but no
longer are contingent, as soon as the documents are presented and corresponding
letters accepted by the bank.
Formal commitments to pay, as acceptances, promissory notes, and even deferred
payment letters of credit (already used), are not contingent liabilities. Although
being just potential, contingent liabilities shall be taken seriously into account when
analyzing the financial health of a bank.
When issued on behalf of reliable clients, endorsements and securities will remain
as contingent liabilities until their maturity. But when they are issued on behalf of
persons or companies of questionable soundness, can quickly become in
unavoidable liabilities and can impair completely the balance of a bank.
CONTRACT OF ADHESION or ADHESION CONTRACT
A contract which contents is fixed by one of the parties, and the other just limits
itself to accept it or adheres to it.
CONTRACTOR
A person entering into an Insurance Contract with an Insurance Company and
agrees to pay for the premium.
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TRANSLATION
CONTROL DOCUMENT
Set of documents exchanged between the correspondent banks to facilitate
verification and authentication of all communications that are made between them.
CONVERSION RATE
It is the ratio indicating the number of common shares that may be obtained for
each convertible.
CONVERTIBLE BOND
Obligation issued with the option that the subscriber to maturity can exchange it for
shares or other obligations of the issuer, which facilitates their placement in the
market.
COOPERATIVE CORPORATION
Form of social organization composed of individuals based on common interests and
the principles of solidarity, self-help and mutual aid, in order to meet individual and
collective needs, through the economic activities of production, distribution, and
consumption of goods and services.
Regulated by Law No. 17 of 1 May 1997, governed by Decree No. 39 of 22 October
1998.
CORPORATE NAME
The legal name of a company which is used to distinguish itself from others in the
legal and economic fields and under which accepts its obligations.
CORPORATION
Entity created by law, empowered to acquire assets, incur in obligations, and
engage in certain activities. It is composed of two or more stockholders who acquire
different degrees of responsibility before third parties depending on the legal form
that governs the entity.
In Commercial Law, it is a group of persons who join to carry out a certain activity.
By fulfilling the legal requirements for the type of society, they acquire legal
capacity, regardless of the members who constitute it. Corporations may be civil or
commercial, and the latter may be collective, partnerships, limited companies, etc.
CORRESPONDENT BANK
When two banks maintain business relationships, it is said they are correspondent
banks. A bank can have correspondent banks in its own country (usually in areas or
cities where it does not have branches or offices of its own) and overseas. Due to
the globalization of trade and financial transactions, it is increasingly important for
banks to have a wide international network of correspondents.
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TRANSLATION
COUNTER MEXICAN PESO/U.S. DOLLAR EXCHANGE RATE
United States dollar price in term of Mexican pesos to be used in retail purchase and
selling transactions of dollars to the public in general, commercial bank branches,
foreign exchange bureaus, and exchange centers. There are two types: cash and
paper.
COUNTRY RISK
All risks inherent to transnational operations and, in particular, to financing from
one country to another.
The importance of considering the country risk, in credit operations, grew rapidly
with the development of foreign trade, multinational companies and, above all,
international banking.
Bankers soon discovered that financing customers in other countries means facing a
series of new and different problems. To do so, they should study the political,
economical, social and even psychological characteristic of the countries they are
trying to establish business relationships with. Also, they must study the legal and
fiscal aspects existing in other nations.
The most common danger to transnational credit operations arises from the
possibility that the foreign debtor, upon the expiration of the transactions, is unable,
due to regulatory or other reasons beyond his control or responsibility, to transfer
the lender the funds. In view of this, the term is sometimes erroneously considered
synonymous with transfer risk. The latter, however, refers only to one aspect of
country risk.
The general concept includes other risks, such as expropriation and nationalization,
for example.
COUPON RATE
Fixed interest rate derived from long-term instruments.
COVERAGE
Operation that aims to eliminate or significantly reduce the exchange risk, rate or
market risk resulting from market transactions.
In the insurance area, is the scope of a risk assurance, where the insurer, whenever
there is a sinister subject of the insurance, is obliged to pay the insured a
determined sum of money.
CREDIT
Transferring ownership of money, goods or other property by a promissory note
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TRANSLATION
CREDIT ANALYSIS
Assessment process to determine whether a credit applicant meets the conditions
for granting credit based on the information provided to the financial institution.
CREDIT APPLICATION
It is the skeleton or printed form that a credit applicant must fill out and provide it
to the financial institution. It is the first requirement to be awarded a loan.
CREDIT CARD
Means of payment and cash withdrawal, represented by a plastic, signed by the
borrower, which is awarded based on a revolving credit previously authorized by the
issuer bank. The credit card is used to purchase consumer goods or pay for services
in the businesses affiliated to the system implemented by the issuer bank.
Cards issued by a bank or other commercial or financial institution to a particular
person, giving him access to limited credit.
Credit cards are, easily, the most successful form of consumer credit. Their
proliferation has been quick and impressive.
It is regulated by the Superintendency of Banks under Agreement No. 7-2003 of 16
October 2003.
CREDIT DISCOUNT IN BOOKS
Deduction operation carried out by the bank to a company on credit opened on its
accounting books to its customers, but are not documented by credit bonds signed
by debtors.
CREDIT INSTITUTION
An organization whose main activity is to raise funds and grant credits.
CREDIT INSTRUMENT
These are the documents necessary for exercising right thereof, such as checks,
bills of exchange, promissory notes, among others.
Documents provided to certain conditions, which finds the debtor’s obligation, which
rests with the creditor, who can give it in payment for his own obligations.
In stock exchange, is the form of representing securities whose support is a role, as
opposed to another representation instrument as the book entries.
Generically, document issued by a company in order to get resources. Fixed or
variable rate financial instrument. May be public or private and be documented by
physical deeds or simple accounting records.
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TRANSLATION
CREDIT INSURANCE
The one covering the creditor against the possible insolvency of the debtor to make
payment.
CREDIT LINE or LINE OF CREDIT
Agreement between the bank and the client which specifies the maximum amount
available for a loan, once or several times and for a term previously fixed.
CREDIT OPENING
Contract by which the lender is obliged to make available an amount of money to
the borrower or undertake an obligation on his account in order to use the credit
granted in the form and terms and conditions agreed, obligating the borrower to
return to the lender the amounts available or to time cover the amount of the
obligation contracted and in any case to pay the interests, benefits, expenses, and
fees stipulated.
CREDIT PORTFOLIO
Is the set of documents that protect the financial assets or funding operations of a
third party and the holder of such document(s) or portfolio reserves the right to
enforce the obligations contained in the text itself.
CREDIT RISK
Uncertainty or risk that a loan is not recovered on the time agreed.
CREDIT STUDY
It is the qualitative and quantitative analysis of the information provided by a
natural or juridical person to a bank when applying for credit. It is the information
that should be sufficient to evaluate the risk and issue an opinion.
CREDITOR
Any natural or juridical person that is entitled to require any other provision.
Any natural or juridical person that in a business provides securities, effects, goods,
rights or property of any kind and receives in exchange a promissory note or credit
to establish or increase a balance in his favor.
One who has credit in his favor, this means, the one owed to. Within the doubleentry mechanism is the creditor of the account given and outputs something or
alternatively, something that accumulates or registers a profit.
CREDITS
Result of an account when credits are higher than debits.
In banking, situation in which a current or savings account have funds in favor of its
owner.
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Prepared by: S.L. de Sánchez
Date: 22/06/2010
TRANSLATION
CROSS BORDER RISK
Total of credit granted to natural or juridical persons living in a country different
from the lender and, therefore, are subject to country risk.
CROSSED CHECK
Check that cannot be collected, but necessarily must be deposited in a bank
account. Two parallel diagonal lines will be on the front and between them should
not be any description (general crossed check) or otherwise indicate the name of a
given bank (special crossed check).
CROSSED SALE
Combine sales technique in which, through a base product, other interests are
offered to the customer. It takes into account the needs of the users and their
relationship, using criteria for complementarity in the services and products offered.
CURRENCY
Currencies generally accepted for commercial transactions in the international
market. Foreign notes and coins.
CURRENT ACCOUNT
Account opened under a contract between a bank or deposit financial entity and a
natural or juridical person, by means of which a person is allowed to deposit a
certain amount of money and use it whenever he wants to. It differs from the
savings account in which the holder is provided with checks to get his money.
CURRENT ACCOUNT CREDIT
Credit that a borrower can use for once or for several times, rearranging the sums
paid on his debt account before the maturity date of the operation.
CURRENT PORTFOLIO
It is the one composed of loans granted to customers who meet with the timely
payment thereof.
CURRENT VALUE
The resulting deduction of interest or nominal value discounts. The value of an asset
on a particular date as opposed to the one previously had or may have in the
future.
The one which corresponds to a security or good at present, which should be
evaluated for purposes of financial equivalence with other securities or property.
--------------Sources:
Decree Law No. 9 of 26 February 1998 and its by-laws
Commercial Code
No. Ref: SG-TRAD-2010156
Prepared by: S.L. de Sánchez
Date: 22/06/2010
TRANSLATION
Encyclopedic Dictionary, Guillermo Cabanellas
Dictionary of Financial and Banking Terms, Robert Marcuse
Banking and Securities Dictionary, Armando Ibarra Hernández, Ed. Porrúa.
Dictionary of Business and Economics, Arthur Andersen, Ed. Espasa Calpe
No. Ref: SG-TRAD-2010156
Prepared by: S.L. de Sánchez
Date: 22/06/2010