Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

Category: Finance Dictionary

MOTIVE

1. In Law, this is why one committed the crime, the inducement, reason, or willful desire and purpose behind the commission of an offense. Whether the purpose was good, like helping someone

MULLEN BURST TEST

Measures the pressure needed to perforate a single paper sheet or paperboard to indicate its load carrying capacity under specific conditions. It has only limited reliability for double-walled, or two-ply corrugated sheets,

MULTI-DISCIPLINARY

Different disciplines with multiple specialists cover this specific type of treatment.

MULTITASK

1. In General, this is the ability to execute or complete multiple tasks simultaneously by one individual. 2. In Computers, this is a computer’s ability to allow a single user to run

MUTUALIZATION

Retiring the purchased stock of an insurer. Converting a stock insurer to a mutual insurer is done this way.

NARROWBAND

This is a bandwidth less than 1.544 megabits per second (Mbps). Very general term for a transmission rate less than a T1 circuit. Also refer to broadband.

NEGATIVE AMORTIZATION LIMIT

Specific loan types have this provision. The negative amortization amount is limited. The loan’s principal balance will not increase as the borrower pays less than the owed interest charge. Typically determined as

NEGATIVE PLEDGE

Unsecured loan agreement’ provision requiring the borrower to get the current lender’s consent before obtaining any secured loan. An example is a bond indenture clause prohibiting the bond issuer from pledging these

NEIGHBOR RULE

Legal principle that damage or injury to closely associated or nearby people or property may reasonably be foreseen by a person and avoided as acts of commission or omission.

NET CASH BALANCE

Money total in a financial account. Calculate as: all deposits to the initial deposit tallied minus all disbursements and payments made. If money is available, net cash balance is positive. If the

NET PROCEEDS

Sale of goods, property, or securities whose transaction cost have been deducted, has an actual amount received.

NET REVENUE

Any returns and any other negative revenue subtracted from gross total.

NET-NET

Company’s valuation a working-capital basis. Calculated as: accounts receivables plus cash at full value minus uncollectible accounts totaled. Benjamin Graham introduced this company valuation method.

NEUTRAL PARTY

Impartial third-party requested to mediate a controversy, dispute, or issue in which it has no financial, official, or personal interest. This third-party is obligated to the involved parties to fully disclose if

NEW YORK STANDARD FIRE POLICY

Used widely in almost all states, this is a specific type of basic fire insurance contract. This policy is no longer widely used, but still exists in some states. The policy was

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This site contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.