Adjustment date is the date on which a financial term of a contract or transaction is set to change. In real estate, it usually refers to the date on which the interest rate of an adjustable rate mortgage (ARM) changes. An ARM’s interest rate is usually fixed at a discount rate for an initial period before it is reset (or adjusted), according to the parties’ agreement, on a scheduled adjustment date to reflect current market interest rates.
Adjustment period is the time within which the interest rate on an adjustable-rate mortgage (ARM) can reset. It is the scheduled amount of time between each adjustment date.
Administrative expenses are defined under §507(a)(1) of the U.S. Bankruptcy Code, which states that claims that are given first priority distribution are those claims allowed as administrative expenses under §503(b).
An advance is a type of loan or payment in which money or goods are given before consideration is received in return, usually with the expectation of repayment or adjustment in basis by the party receiving the advance.
Also called “future-acquired property."
As established in UCC §9 102-5, an agricultural lien is a lien placed on farm products like farm equipment or livestock that secures payment or performance in exchange for a loan of land, goods, or money.
Amortization has different meanings for loan payments and for taxes. In the context of loans, amortization refers to separating the payments for the loan principal and interest into periodic payments to where the loan is paid off at a specified time, thereby gradually reducing the debt through repayment both lender and borrower agree.
An appraisal is the process by which the value of an item or property is determined. This is necessary in a variety of contexts.
To appreciate means to increase in value (the opposite of depreciate). It may also mean: to understand or recognize the value or significance of something or someone.
See also: appreciation.
[Last reviewed in June of 2021 by the Wex Definitions Team]