accounts interview questions in genpact

National Association of State Savings & Loan Supervisors (NASS&LS) -- the former name of a national organization representing state thrift institution regulators. It is now called the American Council of State Savings Supervisors (ACSSS).

National Association of Securities Dealers (NASD) -- a private organization registered with the Securities Exchange Commission to provide self-regulation of the over-the-counter (OTC) securities market. NASD issues rules governing the practices of broker-dealer firms in the OTC market.

National Association of Securities Dealers Automated Quotations (NASDAQ) -- an automated data network providing brokers and dealers with price quotations on securities traded in the over-the-counter market.

National Council of Community Bankers -- a former trade organization of savings banks, savings and loans, cooperative banks and commercial banks. The organization began using its name on September 13, 1991. Previously it was called the National Council of Savings institutions, which was formed by the November 1, 1983 merger of the National Savings and Loan League (founded in 1943) and the National Association of Mutual Savings Banks (founded in 1920). On June 1, 1992, the National Council of Community Bankers merged with the United States League of Savings Institutions to form the Savings & Community Bankers of America.

National Credit Union Administration (NCUA) -- the federal agency that charters, examines, supervises and insures federal credit unions. NCUA also insures state-chartered credit unions that apply and qualify for deposit insurance. In addition, the NCUA operates a central credit facility for member credit unions.

National debt -- the debt owed by the federal government.

Nationwide loan -- a mortgage loan on improved real property located outside a lending institution's normal business territory but within the United States, its territories or possessions.

Negative amortization -- the result of a mortgage repayment plan in which the borrower makes payments that amount to less than the interest due. Unpaid interest is then added to the outstanding loan balance, causing the outstanding loan balance to increase instead of decrease.

Negative cash flow -- the situation in which expenditures required to maintain an investment exceed income received on the investment.

Negotiable -- able to be transferred or assigned, in place of money, in the ordinary course of conducting business.

Negotiable instrument -- a written promise or order signed by the maker to transfer a specified sum of money on demand or at a fixed future time to the person named on the instrument or to the bearer. A negotiable instrument is usually in the form of a check, draft, bill of exchange, promissory note or acceptance.

Negotiable order of withdrawal (NOW) account -- a savings account with characteristics of a checking account. An account holder can withdraw funds by writing a negotiable order of withdrawal payable to a third party. NOW accounts may earn interest. See Super NOW accounts.

Neighborhood Housing Services (NHS) programs -- programs aimed at halting the further decline of neighborhoods that have begun to deteriorate. They are based on a partnership of community residents, lenders, and local government. NHS is administered by the Neighborhood Reinvestment Corporation.

Neighborhood Reinvestment Corporation -- was created by the Housing and Community Development Act of 1978 to help establish locally run self-help coalitions of business leaders, residents, and local government officials, called Neighborhood Housing Services (NHS) programs, that encourage communities to revitalize depressed urban neighborhoods and thus make home financing more attractive in these areas.

Nest egg -- slang for money saved, often in a savings account, in preparation for retirement or other significant use.

Net -- the amount remaining after certain deductions have been made from the gross amount.

Net balance -- the amount of debt outstanding at a particular time, after all refunds and adjustments have been calculated. It is often called the payoff balance or net payoff.

Net income -- gross income less expenses, including taxes and insurance, but before depreciation, additions to reserves or distribution of earnings.

Net interest-earning assets -- the dollar amount of all interest-earning assets minus the dollar amount of all interest costing liabilities.

Net interest income -- see net interest margin.

Net interest margin -- interest income earned on assets less interest expense paid on liabilities and capital. This is the gross margin for financial institutions.

Net interest spread -- see net interest margin.

Net new savings -- new savings deposits received by a thrift institution less withdrawals; does not include interest credited.

Net operating income -- the net interest margin less provisions for losses and operating expenses plus other operating income.

Net payoff -- see net balance.

net portfolio value (NPV) -- the present value of expected cash inflows from existing assets, minus the present value of expected cash outflows from existing liabilities, plus the present value of net expected cash inflows from existing off-balance sheet contracts. Also called market value of portfolio equity.

Net profit -- see net income.

Net realizable value -- a method of determining the present value of a troubled asset to its present owner based on the assumption that the asset will be held for a period of time and sold at some future date. The present value includes future earnings the asset is expected to generate, less the cost of owning, holding, developing and operating the asset. To compensate for these costs, the asset's projected future net cash flows are discounted using a formula that incorporates the cost of capital (the cost of paying dividends and interest). Net realizable value, therefore, is based on a formula incorporating what the asset must earn in order to pay for its share of the costs of running the business. Net realizable value is one accounting method used to calculate the present value of an asset (a loan) at some point after the loan has become past due and book value is no longer valid. See fair value.

Net rentable area -- the actual square footage of a building that can be rented. Halls, lobbies, stairways, elevator shafts, maintenance areas and the like are not included.

Net return -- the remainder left after total operational expenses and interest payments are deducted from gross income.

Net savings inflow -- the change during a given period of an institution's total savings account liability, determined by adding all deposits and subtracting all withdrawals. Also referred to as net savings gain or net savings receipts. When interest credited to accounts during the period is excluded, the resulting total is referred to as net new savings. See net new savings.

Net worth -- the value in dollars of all assets less all liabilities. Net worth may be expressed as a dollar amount, or as a percentage of either assets or liabilities, calculated by subtracting liabilities from assets and dividing the remainder by assets or liabilities.

Net worth certificate -- an instrument authorized by the Garn-St Germain Depository Institutions Act of 1982, to assist thrift institutions in meeting minimum regulatory net worth requirements. A thrift participating in the program issued net worth certificates to the former Federal Savings and Loan Insurance Corporation (FSLIC) in return for the FSLIC's promissory notes. The notes could be counted as part of the institution's net worth. As the institution regained financial health, it redeemed the net worth certificates by returning the FSLIC's promissory notes.

Net yield -- that part of gross yield that remains after deduction of all costs, including servicing and reserves for losses.

New issue -- a stock or bond sold by a corporation for the first time.

New town -- a new community built in an undeveloped area, intended to be a self-governing, self-contained settlement, and containing residential, commercial, industrial, and institutional facilities as well as public and community facilities. Examples are Columbia, Maryland, and Reston, Virginia.

New York Stock Exchange (NYSE) -- the oldest (founded 1792) and largest securities market in the United States.

No load fund -- a type of mutual fund that does not charge a sales commission (load fee) when an investor buys shares of the fund. See load fund.

Nominal interest rate -- the stated, or contractual, interest rate in a loan agreement, bond or other security, which may differ from the effective interest rate.

Nominee -- an official of a financial institution or some other appointed agent to whom securities or other funds are transferred by agreement with the actual owner. Nominees facilitate the collection and distribution of income from securities (when such securities are held in the name of a nominee), and facilitate the sale or purchase of securities when it may be inconvenient or impractical to obtain the necessary signature of the principal in order to conduct a transaction.

Nonamortized loan -- a loan in which the periodic payments are sufficient to cover only the interest due and, thus, do not reduce the outstanding principal.

Nonassumption clause -- a provision of a mortgage contract that prohibits the assumption of the mortgage by a third party without the prior approval of the lender. See due-on-sale clause.

Nonaccruing loan -- a loan that is more than 60 days past due with no payments being made, and that has stopped accruing interest. See delinquent loan and past due loan.

Non-bank bank -- slang for a kind of financial institution that in the 1980s did not meet the legal definition of a commercial bank, and thus avoided the prohibition against branching across state lines. It avoided being classified as a commercial bank by not engaging in one of the two lines of business cited in the law to define commercial banks; demand deposits or commercial loans. It may have offered a range of bank services but engaged in only one of the two activities that legally defined a commercial bank. The non-bank bank loophole was closed by the Competitive Equality Banking Act of 1987.

non compos mentis -- Latin for the condition of an individual not possessing sufficient understanding to comprehend the nature, extent and meaning of his or her obligations or contracts.

Nonconforming land use -- real property being used in a manner not otherwise permitted by the zoning for the property. The land use is permitted to continue because the land was being used in such a fashion before the zoning ordinance was passed.

Nonconforming loan -- a loan with an unpaid principal balance or an unexpired term that exceeds lending limitations established by the principal purchasers and guarantors of the secondary mortgage market; the Federal Home Loan Mortgage Corporation, and the Federal National Mortgage Association.

Noncurrent loan -- a loan in which payments have fallen behind schedule.

Nondepository financial institution -- a company that deals in financial instruments but does not accept deposits. Examples are insurance companies and brokerage firms.

Nondisturbance clause -- an agreement that permits a tenant holding a lease to remain in possession of a property despite any foreclosure against the owner(s) of the property.

nonfiling insurance -- a type of private insurance that thrift institutions purchase to insure against a loss resulting from unintentional errors or omissions in the filing or recording of a security interest.

Noninterest expense -- the sum of personnel compensation, legal expense, office occupancy and equipment expense, other noninterest expense and loan loss provisions.

Noninterest income -- the sum of mortgage loan servicing fees and other fees and charges, profit (loss) from asset sales, leasing income, and other noninterest income.

Nonmortgage loan -- an advance of funds not secured by a real estate mortgage.

Nonoperating expenses -- the outlays and losses of a savings association that are nonrecurring in nature and that do not result from the ordinary savings and lending operations of the institution. These include the expense of maintaining real estate owned or a loss taken on the sale of a nonmortgage investment; also called nonrecurring expense.

Nonoperating income -- the profit and revenue of a savings association that are nonrecurring in nature and that do not result from the ordinary savings and lending operations of the institution. These include profit on the sale of real estate owned or other nonmortgage investment.

Nonpayment -- the failure to pay as agreed.

Nonperformance -- the failure of a contracting party to provide goods or services according to terms of an agreement.

nonperforming loan -- a loan that is not earning income and: (1) full payment of principal and interest is no longer anticipated, (2) principal or interest is 90 days or more delinquent, or (3) the maturity date has passed and payment in full has not been made.

Nonrecourse loan -- a type of loan in which the only remedy available to the lender in the event of the borrower's default is to foreclose on the collateral; the borrower is not personally liable for repayment.

Nonrecurring charge -- an cost, expense, or involuntary loss that is not likely to occur again.

Nonresidential mortgage loan -- a mortgage loan secured by nonresidential property such as an office building, store, factory, or church.

No-par stock -- a stock with no designated face value.

North American Securities Administrators Association (NASAA) -- an organization made up of state and provincial securities regulators from all 50 states and Canada.

Notary public -- a public figure authorized to attest to the signing of documents, such as deeds or mortgages. The notary public certifies that he or she has witnessed the signing of the document by also signing the document and affixing his or her official seal.

notational voting -- a procedure in which matters to be decided are circulated among those eligible to vote, each of whom in turn indicates approval or disapproval by making a notation on the document being circulated.

Note -- an instrument bearing legal evidence of debt. A note is signed by the maker (borrower) and promises to pay a specified sum of money to the lender at a certain future date and place.

Notice account -- a savings account on which the customer agrees to give the thrift institution a specified notice before making a withdrawal, usually in return for higher interest rates. A penalty may be imposed by the institution for a withdrawal made without the agreed upon notice.

Notice of commencement -- a document used in some states and recorded after a construction loan mortgage has been recorded. All mechanics' liens relate back to the date the notice of commencement was recorded, thus enabling the construction mortgage to remain a first lien, not subordinated to any labor or supplier claim for nonpayment of bills.

Notice of completion -- a legal notice recorded after completion of construction. Mechanics' liens must be filed within a specified period thereafter.

Notional principal -- the amount of principal underlying an interest rate swap transaction, and upon which is based the calculation of swap payments.

Novation -- (1) the substitution of a new debt or obligation for a previous one. (2) the substitution of a new creditor or debtor for an old creditor or debtor.

NOW accounts -- see negotiable order of withdrawal accounts.