accounts terminology and definitions

Uncollected funds -- funds that have been deposited in an account by means of a check drawn on another institution that has not yet paid the check.

Underwater loan -- a loan that, if sold, would be worth less than its current book value. Loans "sink" underwater because: (1) payments are delinquent, or (2) the loan's interest rate is below current market rates for similar loans of similar maturity, or (3) the collateral of a delinquent loan has decreased in value below the amount of outstanding principal.

Underwrite -- (1) to sign one's name at the end of a document, thus signifying agreement or concurrence with the contents of the document. (2) to assume risk and liability for specified events in return for a fee. An insurance company, by signing a policy, becomes the policy's underwriter, thereby assuming the risk of being liable for losses if events specified in the policy occur. (3) in mortgage lending, the act of assessing the risk of a loan and matching it to an appropriate rate of interest and term. (4) to guarantee the sale of a new issue of securities, usually by a securities dealer or a syndicate of dealers.

Undivided interest -- a complete or partial ownership of all parts of a whole. For example, an undivided interest in a pool of mortgages means the ownership or rights to a certain percent of each and every mortgage in the pool.

Unearned income -- (1) income that has been collected in advance of the performance of a contract. (2) Income that is derived from investments, such as dividends, property rentals, and other sources not involving the individual's direct personal efforts.

Unearned interest -- interest on a loan that has already been collected but has not yet been earned because the principal has not been in the hands of the borrower long enough.

Unencumbered property -- property that is fee and clear of debts or liens.

Uniform Commercial Code -- a set of business-related laws dealing with the sale of goods, their transportation and delivery, financing, storage, payments, and various other commercial transactions. These model laws have been adopted, with minor modifications, by most states to provide some consistency among states' commercial laws. They were drafted by the National Conference of Commissioners on Uniform State Laws.

Uniform Gift to Minors Act -- a law in most states that sets forth provisions for giving a minor an intangible gift, such as a savings account, stocks or bonds. The giver (usually a parent) serves as custodian with direct control over the gift. For example, the custodian can sell the gift for the benefit of the child, as long as proceeds are reinvested and the minor receives all gains and income from the gift. Once established, the giver/custodian may not take back the gift. Income from the gift, such as interest from a savings account, is reported and taxed under the name of the minor, at the minor's usually low tax rates.

Uniform settlement statement -- a form that lists all charges imposed on the borrower and the seller in connection with a home mortgage loan settlement. The Real Estate Settlement Procedures Act requires that the lender make the statement available to the buyer and seller at the time of settlement.

Uniform Standards of Professional Appraisal Practice (USPAP) -- rules used in appraising the value of property. The standards are promulgated by the Appraisal Standards Board of the Appraisal Foundation.

Uniform Thrift Performance Report (UTPR) -- OTS' national financial monitoring report used by OTS examiners and analysts to monitor and analyze the activities, condition and performance of individual thrift institutions. The UTPR is also used to focus examiner efforts for on-site examinations of thrifts. First developed in 1992, the detailed UTPR tracks a savings association's financial information over a three-year period. OTS computers produce a UTPR for each savings institution, using data submitted by savings associations in their quarterly Thrift Financial Reports. A UTPR report compares a thrift institution to other peer group associations using percentile ranks and medians, and identifies trends.

Unimproved land -- land in its natural state with no man-made changes in its appearance.

United States League of Savings Institutions -- a former national organization representing the thrift industry. It was founded in 1892 in Chicago. The U.S. League merged on June 1, 1992 with the National Council of Community Bankers to form the Savings & Community Bankers of America. Its name was changed to America's Community Bankers on January 29, 1995.

Unlisted security -- a security that is not listed on any stock exchange, and thus is traded over-the-counter.

Unrealized profits -- paper profits that do not become actual profits until the asset producing the profit is sold or redeemed.

Unsecured credit -- credit extended on the borrower's promise to repay the debt, and for which collateral is not required.

Unsecured debt -- an obligation, generally a loan, not backed by a pledge of assets.

Urban area -- according to the U. S. Bureau of the Census, any community with a population of 2,500 or more, whether incorporated or not.

Urban renewal -- the redevelopment or rehabilitation of real property in a city, usually as the result of a cooperative effort by private developers and local government.

Usury -- interest charges that are higher than allowed by law.