GLOSSARY
OF TERMS - page S
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Savings Bond
Bonds issued by the U.S. Treasury, typically in amounts ranging
from $50 to $10,000. Savings bonds are noncallable–which
means the government cannot retire them before the maturity
date–and are also nontransferable–which means that
bondholders cannot transfer them to someone else. Because
savings bonds are backed by the full faith and credit of the
federal government, many investors consider them to have relatively
low investment risk.
Second Mortgage
A second loan secured by real property that is subject to
an existing first mortgage loan.
Series E Savings Bonds
Bonds that were issued by the U.S. government between 1941
and 1979 that were purchased for 75% of the bond's stated
denomination. These bonds were the precursor to Series EE
and Series HH bonds. Outstanding Series E bonds may be exchanged
for its successor varieties. Interest is exempt from state
and local taxes, though subject to estate, inheritance, gift
tax, and federal income tax
Series EE Savings Bonds
Bonds issued by the U.S. government at a 50% discount from
par. Also known as Energy Savings Bonds, nonmarketable Series
EE bonds come in denominations of $25, $50, $75, $100, $200,
$500, $1,000, $5,000 and $10,000. Series EE Bonds replaced
Series E Bonds and are subject to the same taxes. Series EE
Bonds may be exchanged tax free for Series HH Bonds at maturity.
Series HH Savings Bonds
Nonmarketable U.S. government savings bonds issued at par
and purchased only by trading in Series EE bonds at maturity.
Designed for investors who seek regular income, interest on
Series HH bonds is paid semiannually and is exempt from state
and local taxes.
Settlement Date
In a mortgage transaction, an buyer must pay for the purchase
of the property on a date agreed upon by the buyer and the
seller.
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