Definitions of Terms
Accretable yield | In the context of loans acquired in transfers, the cash flows expected to be collected in excess of the initial investment. |
Carrying amount | The face amount of the interest‐bearing asset plus (or minus) the unamortized premium (or discount). |
Commitment fees | Fees charged for entering into an agreement that obligates the enterprise to make or acquire a loan or to satisfy an obligation of the other party under a specified condition. For purposes of this Statement, the term commitment fees includes fees for letters of credit and obligations to purchase a loan or group of loans and pass‐through certificates. |
General reserve | Used in the context of the special meaning this term has in regulatory pronouncements and in the US Internal Revenue Code. |
Incremental direct costs | Costs to originate a loan that (1) result directly from and are essential to the lending transaction and (2) would not have been incurred by the lender had that lending transaction not occurred. |
Long‐term interest‐bearing assets | For purposes of this section, these are interest‐bearing assets with a remaining term to maturity of more than one year. |
Net‐spread method | Under this method, the acquisition of a savings and loan association is viewed as the acquisition of a leveraged whole rather than the acquisition of the separate assets and liabilities of the association. |
Nonaccretable difference | In the context of loans acquired in a transfer, the excess of contractual cash flows over the amount of expected ... |
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