What Is a Notary? A notary is a publicly commissioned official who serves as an impartial witness to the signing of a legal document. Document signings where the services of a notary are generally necessary are real estate deeds, affidavits, wills, trusts, powers of attorney, bills of sale, or other official transactional documents. The main reason a
What Is Notching? Notching is the practice by credit rating agencies to give different credit ratings to the particular obligations or debts of a single issuing entity or closely related entities. Rating distinctions among obligations are made based on differences in their security or priority of claim. With varying degrees of losses in the event
What Is a Note? A note is a legal document that serves as an IOU from a borrower to a creditor or an investor. Notes have similar features to bonds in which investors receive interest payments for holding the note and are repaid the original amount invested—called the principal—at a future date. Notes can obligate issuers
What Does Not for Profit Mean? Not-for-profit organizations do not earn profits for their owners. All of the money earned by or donated to a not-for-profit organization is used in pursuing the organization’s objectives and keeping it running; income is not distributed to the group’s members, directors, or officers. Typically, organizations in the nonprofit sector
What Is a Not-Held Order? A not-held order gives a broker the time and price discretion to seek the best price available. The broker is not held responsible for any potential losses or missed opportunities that result from their best efforts. A held order, in contrast, requires immediate execution. The not-held order is usually a
What Is a Notice of Default? The term notice of default refers to a public notice filed with a court that states that the borrower of a mortgage is in default on a loan. The lender may file a notice of default when a mortgagor falls behind on their mortgage payments. Information on notices of
What Is a Notice Of Deficiency? A notice of deficiency is a legal determination by the IRS of a taxpayer’s tax deficiency. It is an official written claim that a taxpayer owes additional income tax (and often interest on that amount, plus additional penalties). It is issued when the IRS proposes a change to a
What Is a Notice of Dishonor? A notice of dishonor is a formal notice stating that the bank will not accept a check or draft presented to the institution. A notice of dishonor may be given to the holder or presenter of the instrument. It may also be given to the issuing institution. Key Takeaways
What Is a Notice Of Non-Responsibility? A notice of non-responsibility is a legal document used by property owners in the U.S. to protect themselves from liability for nonpayment for services done to improve that property. The laws regarding a property owner’s liability for nonpayment vary from state to state, but in most jurisdictions, construction companies
What Is a Notice of Seizure? A notice of seizure is a written notice from the Internal Revenue Service (IRS) to inform either an individual taxpayer or business that the government has seized its property. Also known as form 2433, a Notice of Seizure states that, under the authority in section 6331 of the Internal
