Glossary
B
38 terms
12b-1
Rule 12b-1 in Chapter 17 of the Code of Federal Regulations is one of the regulations implementing the Investment Company Act of 1940.
backplant
A title plant that antedates the period covered by its existing title plant.
Used in 1 subtopic:350-950
Balance sheets
See paragraph 946-10-S99-2, Regulation S-X Rule 6-02(c), for the definition of balance sheets.
Used in 1 subtopic:946-10
Bankruptcy Code
A federal statute, enacted October 1, 1979, as title 11 of the United States Code by the Bankruptcy Reform Act of 1978, that applies to all cases filed on or after its enactment and that provides the basis for the current federal bankruptcy system.
Bankruptcy Court
The United States Bankruptcy Court is an adjunct of the United States District Courts. Under the jurisdiction of the District Court, the Bankruptcy Court is generally responsible for cases filed under Chapters 7, 11, 12, and 13 of the Bankruptcy Code.
Bankruptcy-Remote Entity
An entity that is designed to make remote the possibility that it would enter bankruptcy or other receivership.
Used in 1 subtopic:860-10
bargaining cooperatives
A special type of service cooperative that serves its members by negotiating with processors on their behalf.
Used in 1 subtopic:905-10
base contract
The type of contract specified in the policy form before the addition or election of riders or other contract features. For example, for an annuity with a guaranteed-minimum-income-benefit rider, the annuity would be considered the base contract.
Used in 1 subtopic:944-30
Base Jackpot
The fixed, minimum amount of a slot machine payout for a specific combination.
Benchmark Interest Rate
A widely recognized and quoted rate in an active financial market that is broadly indicative of the overall level of interest rates attributable to high-credit-quality obligors in that market. It is a rate that is widely used in a given financial market as an underlying basis for determining the interest rates of individual financial instruments and commonly referenced in interest-rate-related transactions. In theory, the benchmark interest rate should be a risk-free rate (that is, has no risk of default). In some markets, government borrowing rates may serve as a benchmark. In other markets, the benchmark interest rate may be an interbank offered rate.
Beneficial Interests
Rights to receive all or portions of specified cash inflows received by a trust or other entity, including, but not limited to, all of the following: Senior and subordinated shares of interest, principal, or other cash inflows to be passed-through or paid-through Premiums due to guarantors Commercial paper obligations Residual interests, whether in the form of debt or equity.
Used in 11 subtopics:325-40805-10810-10815-10815-20815-25+5 more
benefit information
The actuarial present value of accumulated plan benefits.
benefit information date
The date as of which the actuarial present value of accumulated plan benefits is presented.
benefit period
The period over which benefits are provided. The benefit period includes the periods during which the insurance entity is subject to risk from policyholder mortality and morbidity and during which the insurance entity is responsible for administration of the contract. The benefit period does not include the subsequent period over which the policyholder or beneficiary may elect to have settlement proceeds disbursed.
Used in 1 subtopic:944-40
Benefit security
The plan's present and future ability to pay benefits when due.
Used in 1 subtopic:960-10
benefit-years-of-service approach
One of three benefit approaches. Under this approach, an equal portion of the total estimated benefit is attributed to each year of service. The actuarial present value of the benefits is derived after the benefits are attributed to the periods.
Used in 1 subtopic:715-30
Benefits
The monetary or in-kind benefits or benefit coverage to which participants may be entitled under a pension plan or a health and welfare plan (which can include active, terminated, and retired employees or their dependents or beneficiaries). Examples of benefits may include, but are not limited to, health care benefits, life insurance, legal, educational, and advisory services, pension benefits, disability benefits, death benefits, and benefits due to termination of employment.
Used in 18 subtopics:205-960205-962205-965325-960325-962325-965+6 more
benefits of servicing
Revenues from contractually specified servicing fees, late charges, and other ancillary sources, including float.
Used in 1 subtopic:860-50
bid-ask spread
A bid-ask spread is the difference between the highest price a buyer will pay to acquire an instrument and the lowest price at which any investor will sell an instrument.
Used in 1 subtopic:815-10
blackout periods
A period of time during which exercise of an equity share option is contractually or legally prohibited.
Used in 1 subtopic:718-10
Blended-rate loans
Blended-rate loans involve lending new funds at market interest rates combined with existing loans at rates currently lower than market rates. (Those funds are not advanced under a line of credit.)
Used in 1 subtopic:310-20
blind pool
Partnerships in which investment units are sold before some or all of the properties to be acquired are identified.
Used in 1 subtopic:360-970
board-contingent plan
A reimbursement 12b-1 plan that provides that, on the plan's termination, a fund's board of directors has the option, but not the requirement, to pay the distributor for any excess costs incurred by the distributor.
Used in 1 subtopic:946-20
Board-Designated Endowment Fund
An endowment fund created by a not-for-profit entity's (NFP's) governing board by designating a portion of its net assets without donor restrictions to be invested to provide income for a long but not necessarily specified period (sometimes called funds functioning as endowment or quasi-endowment funds). In rare circumstances, a board-designated endowment fund also can include a portion of net assets with donor restrictions. For example, if an NFP is unable to spend donor-restricted contributions in the near term, then the board sometimes considers the long-term investment of these funds. See Endowment Fund.
Used in 7 subtopics:205-958210-958220-958230-10320-958605-958+1 more
Board-Designated Net Assets
Net assets without donor restrictions subject to self-imposed limits by action of the governing board. Board-designated net assets may be earmarked for future programs, investment, contingencies, purchase or construction of fixed assets, or other uses. Some governing boards may delegate designation decisions to internal management. Such designations are considered to be included in board-designated net assets.
box spreads
A combination of long calls and short puts (identical with respect to the underlying security issue, number of shares, exercise price, and expiration date) coupled with long puts and short calls (identical with respect to the underlying security issue, number of shares, exercise price, and expiration date). In boxing (coupling), the long calls and short puts with the long puts and short calls, the underlying security issue, the number of shares, and the expiration date remain identical. However, the exercise price of each combination is at a different amount.
Used in 1 subtopic:320-940
breeding herds
Breeding herds consist of mature and immature male and female animals, either of registered or commercial grade, that are maintained for their progeny.
Used in 1 subtopic:360-905
Broadcaster
An entity or an affiliated group of entities that transmits radio or television program material.
Broker-Assisted Cashless Exercise
The simultaneous exercise by a grantee of a share option and sale of the shares through a broker (commonly referred to as a broker-assisted exercise). Generally, under this method of exercise: The grantee authorizes the exercise of an option and the immediate sale of the option shares in the open market. On the same day, the entity notifies the broker of the sale order. The broker executes the sale and notifies the entity of the sales price. The entity determines the minimum statutory tax-withholding requirements. By the settlement day (generally three days later), the entity delivers the stock certificates to the broker. On the settlement day, the broker makes payment to the entity for the exercise price and the minimum statutory withholding taxes and remits the balance of the net sales proceeds to the grantee.
Used in 1 subtopic:718-10
Brokered Market
A market in which brokers attempt to match buyers with sellers but do not stand ready to trade for their own account. In other words, brokers do not use their own capital to hold an inventory of the items for which they make a market. The broker knows the prices bid and asked by the respective parties, but each party is typically unaware of another party's price requirements. Prices of completed transactions are sometimes available. Brokered markets include electronic communication networks, in which buy and sell orders are matched, and commercial and residential real estate markets.
Used in 1 subtopic:820-10
Business
Paragraphs 805-10-55-3A805-10-55-4805-10-55-5805-10-55-6 and 805-10-55-8805-10-55-9 define what is considered a business.
Used in 33 subtopics:205-10205-20220-40350-10350-20350-30+6 more
Business Combination
A transaction or other event in which an acquirer obtains control of one or more businesses. Transactions sometimes referred to as true mergers or mergers of equals also are business combinations. See also Acquisition by a Not-for-Profit Entity.
Used in 16 subtopics:220-40350-20740-805805-10805-20805-30+6 more
Business Interruption Insurance
Insurance that provides coverage if business operations are suspended due to the loss of use of property and equipment resulting from a covered cause of loss. Business interruption insurance coverage generally provides for reimbursement of certain costs and losses incurred during the reasonable period required to rebuild, repair, or replace the damaged property.
Used in 1 subtopic:220-30