The amount of money paid to a lender for a loan, usually including both interest and repayment of the loan itself Default Not honoring a legal commitment is known as a default One common type of default is not paying back a loan Depreciation The amount of "wear and tear" on a piece of equipment or a building Usually, this amount is spread out equally over a fixed time span Buildings usually depreciate equally over 27 5 years; furnaces over 15 years; carpeting over 7; that is, each year the building is worth 1/27 5 less; the furnace 1/15 less and the carpeting 1/7 less The IRS lets you deduct these amounts each year from the co-op's earned income (Note: Land does not depreciate ) Development Budget A projection of how much it will cost to start up a cooperative Dissolution When a company decides or is forced to go out of business Dividend An amount paid to shareholders in a corporation out of the corporation's profit or surplus Back to Top
The principal and interest charges payable on outstanding debt, the principal of maturing serial bonds and the required contributions to a sinking fund for term bonds
The total amount of credit card, auto, mortgage or other debt upon which you must pay Deed The written document conveying real property Once recorded at the Courthouse, the original piece of paper is not needed to convey title in the future Deed of Trust A voluntary lien to secure a debt deeding the property to Trustees who foreclose, sell the property at public auction, in the event of default on the Note the Deed of Trust secures In many states, this document is used in place of a mortgage to secure the payment of a note Default: Failure to make mortgage payments on a timely basis or to comply with other conditions of a mortgage instrument
Cash payments covering interest charges and principal due on outstanding loans Your debt service is the amount of money you have to pay each period (month/year) to make your loan payments
A series of payments comprised of principal and interest that are calculated to extinguish a debt over a specified period of time For level debt service these payments would be equal Specifically, the periodic payment of principal and interest earned on mortgage loans