| Parity Debt:
Debt obligations issued or to be issued with an equal
claim to other debt obligations on the source of payment
for debt service. |
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| Pay-As-You-Go Financing:
Describes government financing of capital outlays from
current revenues or grants rather than by borrowing. |
| |
| Penalty:
Punitive charge assessed for delinquent debts. The rate
to be assessed is capped by law. |
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| Personal
Property:
Tangible, movable
assets, such as automobiles,
planes, and boats.
|
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| Pre-Foreclosure
Sale:
The opportunity for
borrowers who cannot
meet their obligation
(repayment of a loan)
to sell their property
in order to avoid
foreclosure. Borrowers
who agree to sell
their property using
this method are generally
relieved of their
loan obligation. |
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| Preliminary
Rating: A credit opinion
from a rating agency based on a preliminary assessment
assigned to a proposed bond issue. |
| |
| Prepayment:
Partial or full repurchase or other advance deposits of
outstanding loan principal and interest by the borrower/debtor.
The repurchase may be made at a discount from the current
outstanding principal balance. |
| |
| Present
Value (PV):
The value of future
cash flows discounted
to the present at
certain interest rate
(such as the entity's
cost of capital or
funds), assuming compounded
interest. The GAO
definition of present
values is as follows:
The worth of a future
stream of returns
or costs in terms
of money paid immediately
(or at some designated
date). A dollar available
at some date in the
future is worth less
than a dollar available
today because the
latter could be invested
and earn interest
in the interim. In
calculating the net
present value, prevailing
interest rates provide
the basis for converting
future amounts into
their "money now"
equivalents. Under
credit reform, the
subsidy cost of direct
loans and loan guarantees
are to be computed
on a present value
basis and included
as budget outlays
at the time the direct
or guaranteed loans
are disbursed. |
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| Principal:
Amount loaned to the borrower and owed to the federal
government which excludes interest, penalties, administrative
costs, loan fees, and prepaid charges. |
| |
| Program
Account:
Budget account into
which an appropriation
to cover the subsidy
cost of a direct loan
or loan guarantee
program is made and
from which such cost
is disbursed to the
financing account.
Usually, a separate
amount for administrative
expenses is also appropriated
to the program account.
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| Project
Revenues:
All rates, rents,
fees, assessments,
charges, and other
receipts derived by
a project sponsor
from a project. |
| |
| Purchase
Rate:
Total actual and projected
dollars purchased,
including principal
and interest, on a
guaranteed loan as
a percentage of the
total dollars disbursed
for a given cohort
of loans.
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| Purchase:
If a borrower is in default for at least 60 days (SBA
terms), the lender can request the Agency to honor its
guarantee by purchasing SBA's pro-rata share of the debt
outstanding to the lender. The purchase amount includes
principal and up to 120 days (SBA terms) accrued interest.
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