Here is a list containing words that were used in the elm capital owner financing real property note and business note areas.

Acceleration Clause
A lease should contain language that guarantees payments for the entire term.

Amortization:
A gradual, systematic, and instalment-based payment of a debt such as a mortgage, or any other loan,
Interest for a fixed period of time so that the entire debt can be paid.

Asset:
Any property that has commercial or exchange value and is owned by an individual, business or institution. Assets of a business could include real estate, equipment inventory and intellectual assets like copyrights or trademarks.

Assignability:
Ability to sell or assign an income stream to someone else.

Assignee:
A person or entity that acquires or purchases the right to an asset.

Assignment:
Transferring the rights, title, or interest in any debt instrument properly owned by another party.

Assignor:
A person who gives or sells an asset and then forfeits rights to it.

Credit customers from “B” to “D”
These customers have poor credit ratings and are often unable to qualify for traditional financing. These customers are also known as sub-prime credit.

Balloon:
The principal balance that is due and owing in full at a specific point in time. In any case, it must be less than the amount of time necessary to amortize the debt fully.

Bankruptcy:
An individual or company insolvent. Inability to pay off debts.

Beneficiary:
The beneficiary or the party entitled to the proceeds or benefits of the life insurance policy on the death of the insured.

Bill Of Sale
This document is used to transfer title to certain goods from the seller to the buyer.

Income streams that are business-based
Cash flow instruments are cash payments that are made to a company by another business or the government.

Cashflow
Cash flow is the movement of cash through a household or business. Cash flow is the movement of cash through a business or household in the form revenues and expenses.

Chattel Mortgage
A mortgage on personal property that is used to secure a loan. This is usually used to sell a business. Also known as a
Security agreement

Collateral:
Some thing of value (land or a home, a vehicle, etc.) This is used to secure the repayment of a debt. Lenders promise collateral until the loan is repaid. The lender can take the collateral if the borrower defaults.

Creditor:
A debtor who owes payments to a debtor.

Debtor:
A person who owes money and makes payments to creditors.

Default:
Failure to fulfill or perform a legal obligation, duty, or promise.

Due diligence:
Research is necessary to fully understand the transaction, income stream, client and/or payer. Credit may be required for due diligence
Checks, appraisals, UCC searches and lien searches are all possible.

Equity:
Owners have more equity in their property than they do in debt.

Escrow:
A system where money documents, personal property or real property are held in trust by a third party, until the terms and condition of the escrow instructions have been completed or terminated.

Face value
The current principal balance of an income stream.

Foreclosure:
A court proceeding to seize property as security for a default debt.

Funding source:
A person who invests in income streams or an investment company.

Hypothecation:
Borrowing money from a lender and investing the funds in a debt instrument. The lender is then given a security interest in that debt instrument to secure the loan.

Income stream
A future payment, series of payments, or debt that one party owes another. Also called a debt
Instrument or cash flow instrument

Investment-to-value ratio:
This is a measure of the creditor’s financial security and the likelihood of the creditor being able to recover all of its money in the event that there is a foreclosure.

Loan-to-value ratio:
This is a measure of how mortgaged a property and how likely it is for the owner to default on their debts.

Market Value
The current market price for property.

Mortgage:
A written instrument that creates lien by pledge of real property as security.

Owner Financing
This is a type of financing where the seller of a tangible object accepts a promissory notice as a part of the purchase price. Also known as seller financing.

Partial:
Any portion of a payment stream which is less than the entire amount due.

Personal Guarantee
A contract agreement between a seller and a funding source, in which the seller assumes personal responsibility.
Responsibility and liability for obligations arising from the income stream

Profit and Loss Statement
A financial statement which shows the historical records of income and expenses for a company.

Promissory Note
A written promise to pay a specific amount to a party over a period of time.

Real property
Real estate.

Replevin:
A court proceeding to seize property (other then real estate) as security for a defaulted debt.

Seasoning:
The amount of time that payments have been made on a debt instrument or note.

Secondary market
Marketplace where people and businesses can trade privately held income streams for funding sources.

Securitization:
Bundling and resale to investors of debt instruments is only permitted for licensed parties and under the supervision of the SEC.

Security Interest
A security interest is a property interest that is not real estate and which is used to secure a debt or other obligation. Execution of a security agreement, one or more financing statements and the Uniform Commercial Code creates a security interest.

Servicing:
In accordance with the terms of the note, the borrower collects interest and principal payments, as well as trust fund items like taxes and fire insurance. The lender’s servicing includes bookkeeping, accounting, tax records, follow-up on delinquent loans, and loan analysis.

Subordination:
A creditor’s written acknowledgment that a debt owed to him or her by a borrower is inferior to a debt owed to another creditor by the same borrower is called a “creditor acknowledging”

Time value
This concept addresses how the value of money changes over time.

Title commitment
After a title search is completed, the insurer will make a commitment to the proposed insured to issue a title insurance policy.

Title insurance
Title insurance can be beneficial to either the payer or the beneficiary. Title insurance covers the victim for any damages resulting from a false or clouded title to real property.

Title policy:
A policy of insurance that covers a party against losses due to a defect in a title.

Uniform Commercial Code
A standardized set of guidelines that are protected by law and which govern how business transactions should be conducted.