What Is a Non-Purpose Loan? A non-purpose loan is an alternative type of loan that often involves using investment securities as collateral and relies on complex structuring. Regulated non-purpose loans can be offered by brokerages and financial institutions with some specific government-regulatory documentation requirements. Key Takeaways A non-purpose loan is an alternative type of loan
What Is a Non-Qualified Roth IRA Distribution? A non-qualified Roth individual retirement account (Roth IRA) distribution is a withdrawal that doesn’t meet Internal Revenue Service (IRS) criteria for a qualified distribution. If you take a non-qualified distribution, you could end up owing taxes on the amount withdrawn as well as an early withdrawal penalty. Key
Non-recourse debt is a type of loan secured by collateral, commonly property. If the borrower defaults, the issuer can seize the collateral but cannot seek out the borrower for any further compensation, even if the collateral does not cover the full value of the defaulted amount. A non-recourse debt does not hold the borrower personally
What Is a Nonce? “Nonce” is a portmanteau of “number used only once.” It is a four-byte number added to a hashed—or encrypted—block in a blockchain that, when rehashed, meets the difficulty level restrictions. The nonce is the number that blockchain miners are solving for. When the solution is found, the blockchain miner that solves
What is a Non-Client Order? A non-client order is an order on an exchange made by a participant firm on behalf of itself or a partner, officer, director, or employee of the firm. A participant firm entitled to trade on an exchange is known as a member firm. Most securities exchanges restrict a participant firm
What Is a Non-Commercial Trader? A non-commercial trader is defined by the Commodity Futures Trading Commission (CFTC) as someone who has no business activities related to a particular commodity in which they might have a position in the futures or options markets. In other words, non-commercial traders are not looking to take delivery of a
What Is a Non-Compete Agreement? A non-compete agreement is a legal agreement or clause in a contract specifying that an employee must not enter into competition with an employer after the employment period is over. These agreements also prohibit the employee from revealing proprietary information or secrets to any other parties during or after employment.
What Is a Non-Competitive Tender? A non-competitive tender is an offer to buy United States Treasury securities that is made by non-institutional investors. These smaller investors do not participate in a formal auction for the securities but instead accept the market price set by other participants. By contrast, competitive tender offers are those made by
What Is a Non-Contestability Clause? A non-contestability clause, also known as an incontestability or no-contest clause, is a provision in a person’s will that threatens to redistribute inheritance if beneficiaries contest the will. The goal is that such a stipulation will dissuade a less-favored child or heir to challenge a will in court, and to minimize
What Are Non-Core Assets? Non-core assets are assets that are either not essential or simply no longer used in a company’s business operations. Non-core assets are often sold when a company needs to raise cash. Some businesses sell their non-core assets in order to pay down debt. Although non-core assets are not critical to a
