| Financial Description of Term |
Financial Term/Definition |
| To pledge property as security for a loan without giving up possession is to... | Hypothecate (Under financing) |
| Property that is pledged as security for a debt is called... | Collateral |
| Value over and above whatever is not debt is called... | Equity |
| Unconditional promise made in writing to repay debt is called a... | Promissory Note |
| A written instrument to secure repayment of a debt for real property is a... | Mortgage |
| In a mortgage the buyer or borrower is called the... | Mortgagor |
| In a mortgage the lender is called the... | Mortgagee |
| When a morgage is sold or assigned to another lender is... | Assignment |
| A legal document in which the title to the property is transferred by a borrower to a third party as security for the beneficiary or lender is... | Trust Deed |
| In a deed of trust the borrower is called the... | Trustor |
| In a deed of trust the impartial third party is called the... | Trustee |
| In a deed of trust the lender is called the... | Beneficiary |
| Permits the trustee to sell the property if the borrower defaults, without a court of law is called... | Power of Sale |
