What Is Probate? Probate is the process completed when a decedent leaves assets to distribute, such as bank accounts, real estate, and financial investments. Probate is the general administration of a deceased person’s will or the estate of a deceased person without a will. An executor is commonly named in the will or an administrator, if
What Is Probate Court? Probate court is a segment of the judicial system that oversees the execution of wills as well as the handling of estates, conservatorships, and guardianships. Probate court also handles the commitment of a person with psychiatric disabilities to institutions designed to help them. Probate court ensures that a will is executed
What Is a Problem Loan? In the banking and credit markets, a problem loan is one of two things: A commercial loan that is at least 90 days past due or a consumer loan that is at least 180 days past due. In either case, this type of loan is also referred to as a
DEFINITION of Processing Date A processing date is the date (month, day and year) when a merchant’s bank processes a credit or debit card transaction that has been authorized between a merchant and a customer. Processing is a broad term that describes the multi-step process of transferring funds from a customer to a merchant whenever a
What Is Procurement? Procurement is the act of obtaining or purchasing goods or services, typically for business purposes. Procurement is most commonly associated with businesses because companies need to solicit services or purchase goods, usually on a relatively large scale. It can also include the overall procurement process, which is critically important for companies leading
What Is a Prime Cost? Prime costs are a firm’s expenses directly related to the materials and labor used in production. It refers to a manufactured product’s costs, which are calculated to ensure the best profit margin for a company. The prime cost calculates the direct costs of raw materials and labor that are involved in
What Is Prime Credit? Prime credit refers to a credit score that is one level below super prime, the highest credit rating. Consumers with prime credit have very good credit and pose little risk to lenders and creditors. Lenders and credit card companies offer some of their top loans and cards with the lowest interest
What Is the Prime Rate? The term prime rate refers to the interest rate that commercial banks charge their most creditworthy customers. The Federal Reserve (Fed) sets the federal funds overnight rate which serves as the basis for the prime rate, which is the starting point for other interest rates. The prime rate (sometimes referred
What Is Principal? Principal is most commonly used to refer to the original sum of money borrowed in a loan or put into an investment. It can also refer to the face value of a bond, the owner of a private company, or the chief participant in a transaction. Key Takeaways The term “principal” has
What Is the Principal-Agent Problem? The principal-agent problem is a conflict in priorities between a person or group and the representative authorized to act on their behalf. An agent may act in a way that is contrary to the best interests of the principal. The principal-agent problem is as varied as the possible roles of
