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Tax Assessed Value: The value that a taxing authority places on real or personal property for the purpose of taxation.

Tax-Deferred Accumulation: The ability to accumulate wealth that is currently not taxed, but that will be taxed at a later time, if withdrawn or surrendered. Policy loans on newer type policies are tax-free and generally cost very little, usually zero to two percent.

Tax-Free Accumulation: The ability to accumulate wealth that is not taxed unless the account is surrendered.

Tax-Free Death Benefit: Section 101 of the Internal Revenue Code affords life insurance proceeds special tax benefits. The designated beneficiary is able to receive the face amount of the policy 100 percent free from income taxes. These proceeds can, however, be included in one's estate, as they increase the overall size of the estate. Taxes can be avoided if the owner and beneficiary is a third party or an irrevocable trust.

Tax Withholding: Interest earned on Bank One products is taxable; you should report interest earnings to the IRS each year. If you fail to report interest, the IRS will notify you that you are subject to withholding. Consult your tax advisor for guidance.

Telephone Transfer: The movement of funds from one account to another by phone.

Term: Basic life insurance protection with no savings element attached. It can be compared to straight liability insurance, in that the beneficiary is protected from the financial loss that would be created should the insured die.

Term Loan: A loan with scheduled payments, usually at regular intervals such as monthly, quarterly or semiannually. Also used to describe loans with a term or maturity of greater than one year from issue date.

Term of Installment Loan: The maximum number of years you have to pay off your installment loan.

Testament: An act, such as making a will, by which a person determines the disposition of his or her property after death.

Testamentary Trust: A trust established by a will, which takes effect upon the testator̆ÿs death.

Testate: Describes an individual who died leaving a valid will.

Title Insurance: An insurance policy that protects the insured (purchaser and lender) against loss arising from defects in title.

Title Policy: Insurance issued by a title company/attorney that agrees to pay the insured a specific amount for any loss caused by defects or errors in the title or lien transaction on the property. The cost of the policy is paid by the owner of the property.

Title Report: Also known as Title Search. A search of the real estate records of the county where the property is located to determine the legal ownership of the property. An independent company performs this search to see if any liens are outstanding against the property (e.g., tax lien, mechanic̆ÿs lien, or judgment). The title search is not guaranteed against any loss caused by defects in the title.

Title: The evidence a person has of right to possession of property, real or personal.

Townhouse: Single-family attached dwelling unit with common walls; usually an individual unit in a series of five to 10 houses, with common walls between the units and side yards on end units only; may have one to three stories and all necessary facilities and amenities.

Traveler’s Cheque: Travelers Cheques are currency transaction instruments with an equivalent value as cash. They are used as a safe alternative to carrying cash while traveling. They are accepted as cash at retail merchants, restaurants, and financial institutions worldwide. Unlike cash, they are replaceable when lost or stolen.

Trust Agreement: A document that establishes a trust and governs administration of the trust.

Trust Agreement: The document that sets forth the terms of a trust.

Trust: A fiduciary relationship in which one party (the Trustee) holds legal title to the property of another (the Grantor), for the benefit of a third party (the Beneficiary).

Trustee: One who is appointed, or required by law, to manage a trust. One who holds title to real property under the terms of a deed of trust.

Truth-in-Lending Act: Federal law requiring written disclosure of the terms of a mortgage (including the APR and other charges) by a lender to a borrower after application. Also, requires the right to rescission period.

Two-Cycle Billing: A method of computing finance charges on your credit card account. The two-cycle average daily balance method applies in a month when either:

• You go from paying your account in full to revolving the balance.
• Your account goes from having a zero or credit balance to revolving a new balance. (For example, your first month's billing statement will not be assessed finance charges.)

In those months, you would not have paid interest on the previous cycle's purchase balances, so the average daily balance is calculated for both the previous cycle and the current cycle. If you had paid finance charges on the previous cycle's purchases, you would not pay them again on that cycle.

In all other months the account is subject to either the grace period or the current cycle average daily balance calculation as appropriate.

Two-Four Family: A dwelling designed for occupancy by two, three or four families where the applicant owns the property and may or may not reside in one of the units.