Glossary
Learn about financial terms
A document provided by the truck/chassis manufacturer that details that unique information for the truck (Model year, make, Vehicle Identification Number). The "birth certificate" for the truck.
A fee charged by the bank for the bank's commitment to provide financing.
A fee charged by the bank to prepare financing documents.
A Political Subdivision formed for the special purpose of collecting tax funds and to furnish fire fighting services for a geographic area (District).
Installment Purchase Contract (aka Lease Purchase Agreement):
See Lease Purchase Agreement.
Lease purchase agreement (aka installment purchase contract):
An agreement for tax-exempt borrowing which does not have to be included as part of legal debt limitations.
The recorded financial interest of the lender on the title of the truck.
See Political Subdivision.
A fee charged by the bank to originate (make) the loan.
A bond from an insurance company that insures that a fire truck will be constructed. In case of failure by the manufacturer, the insurance company is financially responsible for completion of the truck.
A percentage of the loan amount paid as a fee. This is a form of prepaid interest that is not reported as part of the interest rate.
A County, City, Township, Borough, Fire District or other politically formed entity for the general purpose of governing the laws, rules, and funds raised by taxes.
An offer by the manufacturer to offer a discount in exchange for the payment of the truck prior to construction.
The discount offered by a manufacturer in exchange for the payment of the truck before the truck has begun construction.
A below-market interest rate for the first few months to entice borrowers that increases to market rates.
See lien.
A debt that legally entitles the bank to not include the interest received as taxable income. This results in a lower interest rate for the borrower because no taxes have to be paid by the bank.
A form of Promotional Interest Rate with a interest rate that few will qualify for or a low introductory rate that will increase to market rates after a few months.
A document provided by the State that shows ownership and security interest(s) in a vehicle.
An interest rate that can change over time based on changes in market interest rates.
A legal organization separate from a municipality formed to fight fires, with or without paid fire fighters.
