accounts Interview quotes

Habeas corpus -- a writ alleging that an individual has been unlawfully detained and ordering the official having custody of the individual to bring the person before a court for the purpose of determining whether the imprisonment was legal.

Habendum clause -- Latin for "to have and to hold." The clause is written into deeds and mortgages to define the transfer of the subject property. It reads: "To have and hold the premises herein granted unto the party of the second part (the grantee), his heirs and the assigns forever."

Haircut -- (1) that portion of an asset's value that cannot be used as collateral. For example, if 90 percent of an asset's value can be used as collateral for a loan, the haircut is 10 percent. Therefore, to provide full backing, the lender will require collateral that is valued in excess of the amount of the loan. The haircut is meant to protect the lender against a possible decrease in the value of the collateral -- to below the amount of outstanding principal -- during the life of the loan. (2) the spread in a repurchase agreement.

Hazard insurance -- a form of insurance coverage for real estate that includes protection against loss from fire, certain natural causes, vandalism and malicious mischief.

Hectare -- a metric unit of land measurement equaling 100 ares, or 10,000 square meters, or 2.47 acres. There are 100 hectares in a square kilometer.

Hedging -- the purchase or sale of a commodity, security or other financial instrument for the purpose of offsetting the profit or loss of another security or investment. Thus, any loss on the original investment will be hedged, or offset, by a corresponding profit from the hedging instrument.

Hidden defect -- any encumbrance on a title that is not apparent in the public records; for example, unknown heirs, secret marriages, forged instruments, mental incompetence, or infancy of a grantor.

Highest and best use -- an appraisal and zoning concept that evaluates all the possible, permissible and profitable uses of a property to determine the use that will provide the owner with the highest net return on investment in the property, consistent with existing neighboring land uses.

High-rise -- a housing structure containing multiple dwelling units and at least eight floors.

Hokeys -- the nickname for bonds sold by the former Home Owners' Loan Corporation. The bonds are no longer in circulation.

hold -- a notation made on an account record to show that a specific amount of money in the account is temporarily not available to the account holder, or to show that the account requires special handling. For example, a hold may be placed on recently deposited checks to allow time for the checks to clear.

Holder in due course -- any subsequent owner of a negotiable instrument such as a check, note or other document. The holder must have accepted possession of the financial instrument in good faith and given something of value for it. The holder is presumed to be unaware that the financial instrument previously may have been overdue, been dishonored when presented for payment, or had a claim against it, if in fact such were the case. For example, someone who accepts a third party check or NOW draft is a holder in due course, as are all subsequent holders of the instrument. Likewise, the holder of a note or loan agreement concluded by two other parties (the original consumer and the seller who first extended credit) is also a holder in due course. Until 1976, the Uniform Commercial Code held that a holder in due course was not liable for any prior claims made against the instrument held. However, in 1976, the Federal Trade Commission ruled that holders in due course could be liable in some cases. For example, if the original customer stops making loan payments because the merchandise purchased on credit is faulty, and the original seller refuses to honor the terms of the guarantee, all subsequent holders of the note may be subject to claims against the seller. While claims may be made against holders of a note, innocent holders of a check or NOW draft generally have the right to collect the face amount from the payer or drawer, regardless or prior claims.

Hold harmless clause -- a provision in a contract that relieves a party to the contract from liability, either as a matter of negotiated agreement, or in the event that circumstances beyond his control prevent him from fulfilling the terms of the contract. For example, in a construction loan, the lender might agree to hold the borrower harmless in the event that the building construction was not completed on time due to a strike, thus preventing foreclosure on the loan.

Holding company -- a corporation or other entity that owns a majority of stock or securities of one or more other corporations, thus obtaining control of the other corporations. A savings and loan holding company is defined by the National Housing Act as "...any company which directly or indirectly controls an insured institution or controls any other company which is a savings and loan holding company...." Control is defined as owning 25 percent or more of the voting stock.

Home -- a residential structure containing one to four dwelling units, or a condominium unit, regardless of the number of units in the building.

Home equity loan -- a revolving, open-end loan extended under a line of credit and secured by the borrower's residential property.

Home improvement loan -- an advance of funds, usually not secured by a mortgage and usually short-term, made to a property owner for such improvements as maintenance and repair, additions and alterations, or replacement of equipment or structural elements.

Home loan -- a residential mortgage loan secured by a one- to four-family property or a condominium unit.

Home office -- the principal place of business of a savings institution; the location registered with the Office of Thrift Supervision as an institution's primary office.

Homeowners association -- an organization of homeowners residing within a particular area whose principal purpose is to ensure the provision of and maintenance of community facilities and services for the common benefit of the residents.

Homeowner’s insurance -- a broad form of real estate insurance coverage that combines hazard insurance with personal liability protection and other coverage.

Home Owners' Loan Corporation (HOLC) -- a federally chartered corporation established in 1933 and administered by the Federal Home Loan Bank Board to refinance mortgages of economically distressed homeowners. The HOLC legally expired in 1954.

Homestead -- the dwelling place, owned and occupied by a family, including the land, house and accessory buildings.

Homestead association -- the name used by some savings and loan associations in the state of Louisiana.

Homestead estate -- in some states, the home and property occupied by an owner and protected by law (up to certain limits) from attachment and sale to satisfy the claims of creditors.

Honor -- to accept and pay a check or draft upon presentation.

House -- a building for human habitation, usually a detached structure.

Household -- all persons occupying a separate housing unit that has either direct access to the outside or a public area, or separate cooking facilities. When the members are related by law or blood, the household constitutes a family.

Housing -- buildings or other shelters in which people live.

Housing permit -- a certificate issued by a local government authorizing residential construction. It describes the type of structure to be built and its estimated cost.

Housing start -- the commencement of construction of a new housing unit. For multiple dwelling structures, each unit is counted as a start when excavation of the building site begins. For public housing, the awarding of the contract is counted as the start.

Housing stock -- the total number of residential units, including mobile homes, available for nontransient occupancy.

Hypothecate -- to pledge property as security for a debt without giving up possession or title. The pledged property is said to be hypothecated. For example, a savings or trust account that is pledged or assigned as collateral for a loan is called a hypothecated account.