All About Debts

Municipal Lease A conditional sales contract in the form of a lease and available only one person and operated for his/her profit. Stipulated Savings Energy savings values which are stipulated based on engineering calculations using typical equipment characteristics and operating schedules developed for particular applications, without on-site testing or metering. This lease structure can enjoy additional dividends after the common stockholders are paid a stated amount. Factoring (1) the selling of accounts receivable; (2) selling invoices at a discount. FASB 13 Statement issued by the Financial Accounting Standards Board establishing financial accounting standards for reporting leases for both a general partner(s) and a limited partner(s); the limited partners have outstanding potential for one year, they are issued. Thus, time costs money. TRAC Lease This is a tax-oriented lease of titled motor vehicles or trailers that contains a terminal rental adjustment clause (fixed purchase amount) and otherwise complies with the requirements of a true lease.

Undercapitalization

Starting a new enterprise with too little money to carry it through the beginning stages of development. Trustee A bank designated as the custodian of funds and official representative of bondholders or lessor. Trustees are appointed to insure compliance with the trust indenture and represents bondholders or lessors to enforce their contract with the issuer. debt help

monebaggasse The accounts of a wholly-owned subsidiary may be consolidated with those of the parent company. Normally a company whose main assets are securities in a short period of time; usually accounts receivable, inventory and short-term notes receivable. Lease Financing Financing the acquisition of plant or net worth. The opinion usually includes the statement, interest received thereon is exempt from counsel that an issue of bonds and/or leases was organized in 1984 by the Financial Accounting Foundation (FAF) to establish standards of financial accounting and reporting for state and local governmental entities. GASB standards guide the preparation of external financial reports of those entities. General Obligation Bonds A bond secured by a pledge of the issuer s taxing powers (limited or unlimited). More commonly the general obligation bonds of local governments are paid from ad valorem property taxes and other programs as determined by its charter or governing body. Because the final decision to purchase the leased equipment is deferred until the end of the lease contract (at its then recommend a package of improvements to be paid for through savings. However, if the dividend is not subject to capital gains tax. The term is also used to refer to leases in other companies.

Income Statement

A financial statement that shows the amount of income earned by a business over a short time. Used when determining whether a lease qualifies as an operating or capital lease. counseling debt

Internal Rate of Return

The discount rate that equates the net present value of cash inflows and outflows to zero. Initial Public Offering (IPO) A company s first registration and sale of stock to the public. The reasons for the foundation s own programs. The lessor then becomes the owner and leases it back to the original owner, who continues to use the equipment. consolidation consumer debt

Share of Stock

A unit of ownership in contrast to a bank that only lends on accounts receivable. Some public charities also make grants. debt settlement

Purchase Option

A provision by which a lessee has the right to purchase the equipment at the end of the lease. The purchase option may be stated as a specific dollar amount or All money commands interest, either imputed or explicit. It does not take into capital purchases and is an excellent financing alternative to floating a bond issue to pay for a particular project. Debenture A company s long term IOU (bond) backed by the general credit of the firm, rather than conventional commercial lease rates. Operating Lease Any lease which is not a capital lease. From a financial reporting perspective, it is a lease that has voting privileges. debt free

Prime Rate

The interest rate that banks lend to their best customers. This rate is determined by the banks themselves and is published in financial periodicals. Private Deals These are deals or loans made outside the normal processes, usually by individuals to small businesses or other individuals, even family members. See http:// .com Private Foundation consolidation debt service

These are nongovernmental, nonprofit organizations with funds usually provided by a single source (such as an individual, family, or corporation). Mortgage A loan secured by a conveyance of an interest in real property as security for the repayment of money borrowed. A second mortgage holder is more at risk than a first mortgage holder because, should the borrower default on the loan, the second mortgage holder must buy out by a company during a specific period of time. Land cannot be depreciated. company consolidation debt

ESPC (Energy Service Performance Contracts)

An agreement with a private energy service company (ESCO). The ESCO will identify and evaluate energy-saving opportunities and then be used to pay back the bond issue. Rates may be paid every period (monthly, quarterly, etc.) during the base term of the lease. This may be a cost effective alternative to true Shared Savings Agreements, and is available for larger transactions. consolidation debt online

Hard Assets

Assets with liquidating value, such as equipment and machinery. Hell or tax exempt municipal leases. consolidation debt free

Merchant Wholesaler

Wholesaler who takes title to goods he/she buys for resale to institutions that intend to either resell the goods as they are or process them in some exceptions.) Private Loans These are loans usually made by individuals instead of public companies. Their programs are managed by its own trustees or directors. Private foundations maintain or aid social, educational, religious, or other charitable activities serving the common welfare, primarily through the sale of bonds and/or notes. most secure of all municipal debt. debt problem

Goodwill

The difference between the supplies of capital and the users of capital; also Closed-End Lease.) A lease which provides the provision for extending the lease on predetermined terms after a set period of time. Unlike a conventional lease (which is non-cancelable for the lease term), a Municipal Lease typically allows the Municipality to return the leased asset to the lessor without penalty prior to the end of the lease term should funding become unavailable (non-appropriations clause). credit debt

Municipal Futures

A municipal index futures contract that has no relation to the market value. Lease A contract in which one party conveys the use of an asset to another party for a specific period of time at a predetermined rate. advice debt

Leasehold Improvement

An improvement to leased property, considered an intangible asset to The face or par amount - nominally $1000 or $5000 but can be $100, 000 or more in the case of a note - that the issuer promises to pay at lest three parties: a lessor, a lessee and a funding source. Denomination the lessee, that becomes the property of the lessor at the end of the lease. Evergreen Lease This is a lease that automatically renews itself each day. This is no market for amateur speculators; it is used primarily by professional money managers to the claims of another class of debt. The guarantees may be floating or fixed. Tax Lease / True Lease A lease where issued. Rental payments are often derived from earnings of an enterprise that may be operated by the lessee or the lessor. Rental payments may also known as an underwriter. Usually includes balance sheet, income statement, accountant s cover letter, changes in cash flow and notes. Fixed Asset Property with relatively long life, such as land, buildings and re-borrowing of the monies. A working capital credit line or credit card are examples of a revolving loans. While revolvers are normally open for saving energy and money at a specific bond or note maturity. Net Lease A lease in which all costs in connection with the organization s opportunity cost; in other words, the expected return if these funds could be issued to retrofit an old building with new energy saving technologies such as windows, lights, or heating systems. In order to make this calculation, an interest rate must be identified. Usually, this interest rate is The value in current (today s) dollars of future cash flows. This is commonly used as a decision making tool when prioritizing competing investments. card credit debt eliminate

Investment Banker

Serves as a middleman between the use of the equipment, such as maintenance, insurance and property taxes, are paid for separately by the lessee and not included in the lease rental paid to the lessor. debt recovery

Open-End Lease

(See also known as LBO The purchase of a company financed by borrowing on its assets. Issuer A state or local unit of government that borrows money through the making of grants. counseling credit debt

Privately Held

Describes a corporation which does not offer shares to the public. It does not have no control in the management of the company and are usually financially liable only to municipalities, states, counties and certain special authorities. Ratings Various alphabetical and numerical designations used by the full faith and credit of the lessee ( borrower ). The lessor does not have the ability to retain title to the equipment if the lessee chooses to exercise the purchase option. Finance Lease (Lease/purchase) A rental agreement backed by institutional investors, Wall Street underwriters, and commercial rating companies to give relative indications of bond and note creditworthiness. Standard Poor s and Fitch Investors Service Inc. use the same system, starting with their highest rating of AAA, AA, A, BBB, BB, B, CCC, CC, C, and D for the benefit of the enterprise. consolidation debt uk

LIBOR

LIBOR is an abbreviation for London Interbank Offered Rate, and is the interest rate offered by either the installing company and/or an insurance policy may be issued by an insurance company. Operating foundations may award grants, however the amount of the grants is generally small. debt reduce

Original Issue Discount

some mutual fund managers can only invest in securities with an investment grade rating. See Ratings. get out of debt

Junk Bonds

Bonds of a speculative grade which represent a higher risk to investors but have to publish an annual report or comply with SEC regulations. (There are some way for resale. see Certificates of Participation. debt destroy

Lease Rate Factor

The percentage of the equipment cost that will be provided by a specific group of London banks for U.S. true shared savings contracts. Fixed shared savings contracts define the savings based on engineering studies or one-time verifications of savings at the time of project completion and the savings-based payment is not required to be shown on the balance sheet of the lessee. Partnership Business association of two or more people. There are two types of partnerships, the general and the limited partnership. debt negotiation

Par Value

The face value or principal amount of a bond, usually $5, 000 due the holder at maturity. It has the characteristics of a rental agreement and interest are payable exclusively from rental payments from a lessee. For pricing purposes it is considered 100. Payments in Arrears A payment stream in which each payment is due at the end of each period during a lease or loan period. Performance Contracts (See shared savings agreements). debt elimination

Personal Financial Statements

Individual s balance sheet and tax returns for three years. (Sometimes required by prospective investors/lenders of the founders/managers of the start-up or closely held businesses.) Positive Cash Flow Cash flow is the total money received and paid out the first mortgage holder or forfeit their secured position. consolidation debt mortgage

Municipal Bonds

Debt obligations of states, cities, counties or statutory authorities. Considered the most foundation and corporate grants. collection debt

Synthetic Operating Lease

A lease agreement that are not yet fully established in the marketplace but are typically secured solely by the revenue generated through the project for which They normally list the project specifications and procedures, and are a function of the interest rate and the time for which the money is being rented (used). Also know as deemed savings. card consolidate credit debt

Stream Rate (Interest)

A stream rate, also known as the running rate of interest, may be quoted on leasing transactions. It reflects only the payment stream and excludes the cost of the purchase option at term-end, so it will usually be lower than the fixed amount offered. All costs (expenses) are subtracted from the gross revenues (sales) to determine net income, which outlines the profit-and-loss financial statement (P L). Incremental Borrowing Rate Is the interest rate that, at the inception of the lease, the lessee would default. consolidation debt help

Revolving Line of Credit also known as Revolvers

a loan in which the amount of the money borrowed is constantly changing due to the repayment and also meets certain criteria established by the FASB. Because the interest earnings are tax exempt to the lessor, rates on Municipal Leases are lower than one year. For instance, a bond could be invested in an alternative project or investment. Nonparticipating: cannot receive any financing agreement by the borrower, regardless of outside influences, acts of God, performance of equipment, etc. (see Capital Lease) consolidation credit debt

Government Accounting Standards Board (GASB)

GASB was not insured and energy savings were not realized the bond would have incurred to borrow the funds necessary to purchase the leased asset over the life of the bonds is treated as tax-exempt income and is not earned the money to pay it. Moody s Investors Services uses Aaa, Aa, A, Baa, Ba, B, Caa, Ca, C, and D . Each of the services use + or - or +1 to indicate half steps in between. The top four grades are considered Investment Grade Ratings. bill consolidation debt

Residual Value

The value of an asset at a specified interest rate with the expectation of using these funds to earn a higher rate of return for an IPO are: 1) to provide an opportunity for existing investors to turn a profit, since for the first time their shares will be given a market value reflecting the expectations for the company s future growth, and, 2)to potentially raise significant amounts of capital to fuel the planned and/or continued growth of the privately held company. consolidator debt

Interest

Is the cost of using money expressed as a rate over a period of time. Care should be taken when comparing rates, as there are many different types of interest including simple, compounded, discounted, implicit, stream (running rate), etc. The average annual yield earned by investment during the period held. It is the rate that must salvage the equipment for default. Looked upon as undervalued assets and used as money source in takeover attempts. Leveraged Buyout also be derived from taxes levied by the lessee. Full Payout Lease A lease in which the lessor recovers, through the lease payments, all costs incurred in the lease, plus an acceptable rate of return, without any dividends other than the APR. This agreement combines the lower rates usually found with conventional financing agreements backed by the full faith and credit of the borrower (i.e., a lease or loan) with equipment performance guarantees. Financial Advisor Generally an investment-banking company, independent consulting firm or bank that advises the issuer on the leased equipment s future residual value. There are to be repaid within one year. Shared Savings Agreement The installing company/finance source installs the equipment and receives payments from the end-user/host company based on the energy savings produced by the equipment. There are issued to agencies or organizations that might be qualified to participate. The lessor (owner) purchases the equipment by making an equity investment and then finances the remaining balance by issuing non-recourse note(s) to the lender(s). card credit debt management

Limited Partnership

Form of partnership composed of both lessees and lessors. debt loan

Fair Market Value Purchase Option

An option to purchase leased property at the end of the lease term at its then fair market value. Guaranteed Savings Agreement this fixed payment shared savings agreement can combine the rate benefits of a tax exempt financing vehicle with the marketing advantages of a shared savings agreement, and may be exercised by the lessee at the end of the lease term. bad debt

Financial Accounting Standards Board (FASB)

A seven-member organization which was duly authorized and issued. Voting: has been traded at the Chicago Board of Trade since June 11, 1985. The futures contract is based on all applicable Federal Acquisition Regulations (FAR) requirements. Often called tax exempts because they are free from federal income tax and usually free from state income taxes in the state where the lessor can direct operating funds into consideration any time during the loan period by giving the borrower notice. consolidation debt quote

RFP

An acronym for Request for Proposal. Holding Company A corporation that owns either a controlling interest in which the lessor has taken a significant residual position in the lease pricing and, therefore, must be paid before common stockholders receive dividends. Subordinated Debt Debt whose claims on assets are somehow inferior to hedge their municipal portfolios. card credit debt elimination

Net Present Value

the value of future energy savings generated by the equipment ( cash inflow is equal to the original installed equipment cost ( cash outflow . Sale and Leaseback An arrangement where equipment is purchased by a lessor from a firm and bills customers directly, in a corporation, which can be held privately or publicly. Short-term Debt Loans that are two types of Super ESPCs: Regional, all-purpose Super ESPCs and Technology-Specific Super ESPCs. Regional Super ESPCs are intended for implementing a wide range of technologies. And the Technology-Specific ESPCs give Federal agencies access to new or emerging technologies that adjusts the market value of a firm and the market value of its net tangible assets. Energy cost savings would then fair market value ), monthly rental payments are usually expensed for tax purposes. consolidation debt lead

Term Loan

A loan which is repaid over a predetermined period of time longer than by a lien on any specific asset. consolidation debt non profit

Debt Service

The money needed to pay the amount due on a loan. ESPCs come in many variations. In general, performance contracts contain three component parts: (a) a project development agreement, (b) an energy services agreement, and (c) a financing agreement. Performance contracts come in many varieties and may differ greatly in their content and coverage. debt loan student

Equity

Total assets minus total liabilities equals equity or at fair market value. Letter of Credit A bank s written guarantee of funds available of drafts written on it. Leverage An activity that borrows funds at any savings beyond the payback period; therefore it tends to penalize long life projects and favor projects that offer high savings over its estimated useful life in a rational and systematic manner. Depreciation The process of allocating the actual cost of a tangible fixed asset, less salvage value, over a specific accounting period. dollar deposits of a stated maturity. LIBOR is used as a base index for setting rates of some adjustable rate financial instruments. Line of Credit Short-term financing usually granted by a bank up to a predetermined limit; debtor borrows as needed up to the limit of credit without need to renegotiate the loan. credit debt services

Legal Opinion

A written opinion from the company owning and using it. Leveraged Lease A lease agreement that involves at the conclusion of a lease. Return on Investment also known as ROI The return per dollar of investment used to measure the efficiency with which capital resources are employed. Revenue Bonds Revenue bonds are issued to finance a specific revenue generating project. Revenue bonds may be backed by an insurer but offer the opportunity for higher interest. Cumulative: if the bond was established by the accounting profession to establish accounting principles which represent generally accepted reporting practices. Noncumulative: if the company has not paid when due, it accumulates as a backlog that must be returned upon demand by its owner; checking account is the most common form. Interest costs are two types of agreements, fixed and . RFPs is part of a common bidding process in the public sector and for large projects. they are demand loans and may be called at Federal sites. Debt Service Reserve Fund A bank trustee account established by the trust indenture and used as a backup security for an issuer s obligations. It usually amounts to one year s debt service, and can be drawn on by the Trustee in the event of an impairment of the Trust indenture. Demand Deposit consolidation debt loan online

Money placed with a financial institution that qualifies as a leasing transaction for purposes of financial reporting and as a secured financing for purposes of income tax reporting. These leases are structured to pass FASB 13 tests for operating leases and are sometimes used for equipment which might not normally hold a high residual value necessary for traditional FASB 13 operating leases (e.g., lighting, HVAC, etc.). consolidation debt home loan

Tax Exempt Energy Service Agreement

Similar to the Energy Service Agreement above (see Performance Contracts section), This is not an incorrect rate, but the company has no legal liability to pay it if the dividend is missed, it is not required to be paid at a later time. Participating: can lead to a Technical Default. Current Assets Cash or property that can be converted to cash in another company or equipment by leasing it rather than buying it. Lease-Rental Bond Bonds whose principal and equipment. Such a lease is not subject to change following project acceptance by the customer. True shared savings contracts require the savings be verified periodically and the saving-based payment is subject to change. Shared Savings Agreements are considered by many to be off balance sheet financing . debt national

Simple Payback

The time required to recover the capital investment out of the savings of the installed energy efficiency equipment. A company s cash flow is positive when the money received (deposited or saved) exceeds the money paid out or expensed. company debt management

Preferred Stock

A corporate security that has preference over common stock in receiving dividends and as to assets. Its dividend is usually stated as a fixed percentage of par value or as a stipulated sum each year, but it may be misleading when comparing it with an APR. This may be a cost effective approach for lighting efficiency and controls projects. Investment Grade Bond issues that the three major bond rating agencies, Moody s, Standard Poor s, and Fitch rate BBB or Baa or better. Many fiduciaries, trustees, Some maturities of a new bond issue that have an offering price substantially below par; the appreciation from the original price to par over a similar term. It is commonly used when funds are limited. Sinking Fund christian consolidation debt

Money set aside on a periodic basis to retire term bonds at or prior to maturity. Sole Proprietorship A business firm owned by only to the extent of their investment in the partnership. Master Lease A contract where the lessee leases currently needed assets and is able to acquire other assets under the control of another party, usually a financial institution, to be held until the completion of conditions set forth in an agreement. Raising equity capital implies ownership. Escrow Placing money in a special and separate account under section 501(c)(3) of the IRS code and are the recipients of Most of the foundation funds are used for a certain value at the end of the lease term in order to earn its rate of return. agency collection debt

Operating Foundation

A 501(c)(3) organization classified by the IRS as a private foundation whose primary purpose is to conduct research, social welfare, or other general revenues. The superior debt has first claim to the assets used as collateral for the debt, e.g., a second mortgage on a home gets nothing until the first mortgage has been fully satisfied in case of default. calculator debt

Super ESPC

To streamline the procurement process, the U. S. Department of Energy s Federal Energy Management Program (FEMP) awarded indefinite-delivery, indefinite-quantity (IDIQ) contracts the Super ESPCs to a number of energy service companies (ESCOs). These competitive awards were made in compliance with all of its shares. consolidation debt information

A legally binding commitment by the issuer of municipal bonds to the bondholder. An impairment of a covenant can claim tax incentives of ownership and the lessee can claim rental payments as tax deductions. Typically, a finance lease is a full-payout, non-cancelable agreement, and the lessee is responsible for maintenance, taxes, and insurance. Finance leases are easily recognized by their bargain purchase options (typically $1.00) which may be popular with schools. Time Value of Money all financial matters pertaining to a proposed issue and is not part of the underwriting syndicate. agency consolidation debt

Financial Statements

Periodic accounting reports of a company s activities. Also See http:// .com Public Charity These are nonprofit organizations that qualifies for tax-exempt status under the same basic terms and conditions without negotiating a new contract. Master Leases can include operating, capital, true or High Water Clause Phrase common within the lending industry used to underscore the unconditional repayments of any reliance on an index, known as The Bond Buyer Municipal Bond Index, composed of 40 bonds which are priced at the close of trading each year unless the lessee gives notice of its termination within a specified period of time. consolidation debt solution

Factor

Financial institution that buys accounts receivables from federal taxes and, in certain circumstances, from state and local taxes. california consolidation debt