Obligor - One who binds oneself to another by contract or legal agreement.

Obligee - One to whom another is bound by contract or legal agreement.

Prepayment penalty - A fee charged by some lenders for early payment of a loan balance as compensation for lost interest income.

Profile - A set of data portraying the significant features of an individual's credit history.

Prohibited basis - Race, color, religion, national origin, sex, marital status, or age (provided that the applicant has the capacity to enter into a binding contract); the fact that all or part of the applicant's income derives from any public assistance program; or the fact that the applicant has in good faith exercised any right under the Consumer Credit Protection Act or any state law upon which an exemption has been granted by the Board.

Public information ratings - Ratings with a "pi" subscript are based on an analysis of an issuer's published financial information, as well as additional information in the public domain; however, they do not reflect in-depth meetings with an issuer's management or incorporate material non-public information, and they are therefore based on less comprehensive information than ratings without a "pi" subscript. Ratings with a "pi" subscript are reviewed annually based on a new year's financial statements, but they may be reviewed on an interim basis if a major event that may affect an issuer's credit quality occurs. Ratings with a "pi" subscript are not modified with a plus (+) or minus (-) designations. Outlooks will not be provided for ratings with a "pi" subscript.

Public record derogatory - Credit bureau status codes for bankruptcy; judgments; wage assignment; mechanics; and federal, state, county, and city liens.

Public record - Information recorded by the courts involving bankruptcy, judgments, tax liens and civil cases.

Real estate - Real estate mortgage loan transaction, in which terms can be revolving or installment.

Real property - Real estate account types, including mortgages (convention, VA, FHA), home improvement, mobile, and second mortgages, used to indicate ownership of real property.

Retail - Retail credit loan types excluding real estate account types. Terms can reflect either revolving or installment loans (for example, Sears, May Co., etc).

Rating outlook - Standard & Poor's assessment of the potential direction of a long-term credit rating over the intermediate to longer term. In determining a rating outlook, consideration is given to any changes in the economic and/or fundamental business conditions. A rating outlook is not necessarily a precursor of a rating change.

The following definitions apply:


• 1.Positive - A rating may be raised
• 2.Negative - A rating may be lowered
• 3.Stable - A rating is not likely to change
• 4.Developing - A rating may be raised or lowered
• 5.N.M. - Abbreviation for "not meaningful."

Revolving - Accounts where the outstanding balance can fluctuate depending on usage. Most revolving account payments are tied to the account balance as a percentage of the balance. Most have credit limits that may not be exceeded. When a balance is not paid in full each month a service charge is added to the balance.

Security - Proper1y that backs up a loan and becomes the lender's if the loan is not paid. Also see collateral.

Security interest - The lender's right to claim collateral and sell it to recover a defaulted loan balance.

Short term issuer credit rating

The following definitions apply:

A-1 - Obligors rated A-1 have a strong capacity to meet their financial commitments. It is Standard & Poor's highest rating category. Within this category, certain obligors are designated with a plus sign (+). This indicated that the obligor's capacity to meet financial commitments is extremely strong.

A-2 - Obligors rated A-2 have satisfactory capacity to meet their financial commitments; however, they are somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligors in the highest category.

A-3 - Obligors rated A-3 have adequate capacity to meet their financial obligations; however, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet their financial commitments.

8 - Obligors rated 8 are regarded as vulnerable and have significant speculative characteristics. The obligor currently has the capacity to meet financial commitments; however, he/she faces major ongoing uncertainties that could lead to the inadequate capacity to meet financial commitments.

C - Obligors rated C are currently vulnerable to nonpayment and are dependent upon favorable business, financial, and economic conditions to meet their financial commitments.

Signature loan - A loan made without collateral.

Truth in Lending Act - Federal law enacted in 1969 requiring lenders to disclose key terms in extension of credit to borrowers in consumer credit applications. The act is part of the Consumer Credit Protection Act.

Valid amount - The dollar amount displayed in the amount field of a credit profile. Variable interest rate -A variable rate is pegged to a certain percentage above the prime rate or some other rate and adjusted either monthly or quarterly as that rate moves. (Variable interest rates are indicated by a V following the APR).

Variable rate loan - A loan with an Annual Percentage Rate (APR) that fluctuates according to certain economic indicators; lenders must disclose what indicators cause the rate to increase, what limits apply, and how the number or amount of payments would be affected.