Glossary 
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C
Canceled Check - a check that has been paid against the maker's account by the drawee bank.
Cash Advance - a cash loan from a financial institution; obtained with a credit card (i.e., VISA) or a check that accesses a line of credit
Cashier's Check - A check drawn by a financial institution on its own funds. The maker and the drawee bank are the same.
Certificate Account - An instrument that is issued by the credit union in the name of the member stating that a certain sum of money is on deposit and that the member agrees to keep this money at the credit union for a certain period of time. Certificate Accounts vary widely in amount and term, and the rate of interest depends on both of these factors.
Certified Check - A personal or business check for which payment is guaranteed by the drawee bank. Proof of the guarantee is shown when the bank stamps the word "certified" on the face of the check.
Charge Off - to treat as a loss
Check Clearing - the process of sending checks through the nation's banking system for delivery to drawee financial institutions for final payment against the makers' checking accounts
Check Hold - Practice used by most financial institutions to ensure checks on deposit will, in fact, be paid by the drawee bank. It was developed to protect consumers and financial institutions from fraud and bounced checks. This system is employed by SCU. Checks held in members' accounts earn interest during the hold period.
Check Routing Symbol - the number in the upper right hand corner of a check in fraction- like figures that designates the Federal Reserve district of the drawee bank, the Federal Reserve office through which the item may clear, and the state in which the drawee bank is located
Check Truncation - The practice of storing checks at the credit union rather than returning them to the member. When a check first enters the check clearing process, the information on the check is captured and transmitted by computers to the drawee bank. The check itself is not sent through the nation's check clearing system. All account transaction information is included on a member's monthly statement. Members may request copies of specific checks.
Closed-End Credit - credit contracts that specify the time period over which the loan or sales contract will be repaid, the total amount due, and the number of payments and due dates on which they fall
Closing Costs - the expenses incurred by sellers and buyers in the transfer of real estate ownership
Collateral - Property belonging to the borrower that is signed over to the credit union to sell if the loan is not repaid. Collateral can be securities, such as stocks, bonds or physical property, such as a home or a car.
Collected Funds - funds deposited in the bank for which payment has been received, and which are available for the depositor's use
Comaker - a person, other than the borrower, who signs a note in order to give additional protection to the creditor granting the loan, because of the uncertain credit quality of the borrower
Common Bond - a unifying factor or characteristic among persons that simultaneously links them together and distinguishes them from the general public
Compound Interest - interest added to the principal and itself begins to earn interest
Consolidation Loan - combining several debts into one loan usually to reduce the annual percentage rate or the dollar amount of payments made each month, extending them over a longer period of time
Correspondent Bank - A bank that maintains an account relationship with another bank or exchanges services with another bank. Correspondents frequently clear checks for each other or participate in large loans, thus sharing the risk.
Co-signer - a person who guarantees the payment of a loan for another person
Credit - (1) a bookkeeping entry that increases the balance in a member's account (deposits and dividends are examples of credit entries) (2) an arrangement to receive cash, goods or services now and pay for them in the future
Credit Authorization - verification of the validity of a credit card and the balance allowable on the purchaser's credit line
Credit Bureau - an organization that gathers information about a consumer's creditworthiness and to which a financial institution may apply for such information about a prospective borrower
Credit Card - an instrument or device, whether known as a credit card, credit plate or any other name; issued (with or without a fee) by an issuer for the use of the cardholder in obtaining money, goods, services, or anything of value; and that creates a liability by the card user in favor of the issuing institution
Credit Disability Insurance - insurance that provides loan payments to be made on behalf of a borrower who is temporarily disabled and loan balances to be paid off if the member is permanently disabled
Credit Limit - maximum amount of credit available to a consumer on a specific account at any one time
Credit Rating - the estimate of the amount of credit that can be extended to a borrower without undue risk based on the borrower's past credit experience
Credit Report - a report to the lender on the credit standing of the borrower, used to help determine creditworthiness
Credit Scoring System - a quantitative, statistical evaluation method used to establish a credit applicant's creditworthiness
Credit Union - a cooperative financial institution that provides consumer financial services for members of a specified group as de-fined by its charter (CUs may be federally or state chartered)
Creditworthiness - an evaluation of a consumer's ability and willing-ness to repay a debt
CUSO-(Credit Union Service Organization) - an organization established primarily to serve the needs of its credit union owner and whose business relates to the daily operations of the credit union it serves