Types of Finance Instruments

Instrument that's evidence of a promise to pay a specific debt; a written, legally binding promise to repay a debt

An instrument held by a third party as security for the payment of a note (rarely used in Ohio). Like a mortgage, it creates a voluntary lien on real property to secure repayment of a debt. Parties to a deed of trust are grantor or trustor (borrower), beneficiary (lender), and trustee (neutral third party). Unlike a mortgage, a trust deed has a power of sale, allowing trustee to foreclose non-judicially.

Instrument that creates a voluntary lien on real property to secure repayment of a debt. The parties to a mortgage are the mortgagor (borrower) and mortgagee (lender).

A real estate installment agreement where buyer makes payment to seller in exchange for right to occupy and use property, but no deed or title is transferred until all, or a specified portion of,payment have been made.

Any document that transfers title (such as a deed), creates a lien (such as a mortgage), or gives a right to payment (such as a note contract).

One who promises to pay money on a note.

The one who promises to make payments on a note

Promissory note or other finance instrument that is freely transferable

When the lender or creditor can obtain immediate cash by selling the note (e.g., when real estate notes are sold or the secondary market).

A note that calls for only interest payments during the term of the note, with a balloon payment at the end to pay off the principle balance.

Loan where payments are applied to principle and interest.

The interest a creditor may acquire in the debtor's property to ensure that the debt will be paid.

To make property security for a loan without giving up possession of it (as with a mortgage).

In a trust deed - the borrower

One who receives a benefit; refers to the lender in a trust deed.