What Is a Bank of First Deposit (BOFD)? A bank of first deposit (BOFD) is a bank at which an individual first deposits a check into his or her account. If the issuer of the check likewise banks at the very same financial institution, clearing the check is known as an “on-us” item. If the
What Is the Bank of Japan (BOJ)? The Bank of Japan (BOJ) is headquartered in the Nihonbashi business district in Tokyo. The BOJ is the Japanese central bank, which is responsible for issuing and handling currency and treasury securities, implementing monetary policy, maintaining the stability of the Japanese financial system, and providing settling and clearing services. Like most central
What Is Bank-Owned Property? Bank-owned property, also known as real estate owned (REO) property, is a designation given to properties that were not sold during a foreclosure sale, and thus are added to that foreclosing bank’s inventory. Key Takeaways Bank-owned property, also known as real estate owned (REO) property, is a designation given to properties
What Is the Bankrate Monitor Index? The Bankrate Monitor Index is an index of money market interest rates paid on depository accounts at banks and credit unions in the United States. These accounts include checking, savings, money market, and CD accounts. In 1996, the Bankrate Monitor Index moved online and has since developed into a
Investopedia / Ryan Oakley What Is Bankruptcy? Bankruptcy is a legal proceeding initiated when a person or business is unable to repay outstanding debts or obligations. The bankruptcy process begins with a petition filed by the debtor, which is most common, or on behalf of creditors, which is less common. All of the debtor’s assets
What Is Bankruptcy Financing? Bankruptcy financing is another term for debtor-in-possession (DIP) financing, or the money a lender provides to a company going through a Chapter 11 bankruptcy reorganization. This money is used by a company to fund its operations while it goes through the bankruptcy process. Key Takeaways Bankruptcy financing refers to the cash
What Is Bankruptcy Risk? Bankruptcy risk, or insolvency risk, is the likelihood that a company will be unable to meet its debt obligations. It is the probability of a firm becoming insolvent due to its inability to service its debt. Many investors consider a firm’s bankruptcy risk before making equity or bond investment decisions. Firms
What Is a Bankruptcy Trustee? A bankruptcy trustee is a person appointed by the United States Trustee, an officer of the Department of Justice, to represent a debtor’s estate in a bankruptcy proceeding. Bankruptcy trustees evaluate and make recommendations about various debtor demands in accordance with the U.S. Bankruptcy Code. However, a bankruptcy judge has
What Is the Bank for Cooperatives? The Bank for Cooperatives was a government-sponsored bank with a mandate to provide subsidized credit to the American agricultural sector. The Bank for Cooperatives was originally established through the Farm Credit Act of 1933. In 1989, 11 of the 13 Banks for Cooperatives merged to form CoBank. CoBank began operations
What Is a Bank Statement? A bank statement is a document (also known as an account statement) that is typically sent by the bank to the account holder every month, summarizing all the transactions of an account during the month. Bank statements contain bank account information, such as account numbers and a detailed list of
