Glossary
Welcome to SFNet's Secured Finance Glossary of industry terms. Currently the SFNet Glossary has over 400 industry terms and definitions. You can search specific terms in the search tool above, or use the alpha tool below and progress on the paginations.
Loan Loss Provision 
A loan loss provision is an expense set aside as an allowance for uncollected loans and loan payments.
Loan Workout Agreement
A mutual agreement between a lender and borrower to renegotiate terms on a loan that is technically in default. This agreement can take many forms such as a modification or a forbearance agreement. The main purpose is to work out a mutual set of terms to avoid foreclosure or liquidation and provide continued financing for a period of time.
Loan and Security Agreement
A loan agreement is a contract between a borrower and lender that outlines the mutual promises made by each party. A security agreement provides a lender with a security interest in a specified asset or property that is pledged as collateral.
Lockbox
A lockbox is a specific post office box opened by a bank's treasury management area to provide expedited processing of payments received by account debtors.
Lower of Cost or Market (LCM)
Lower of cost or market (LCM or LOCOM) is a conservative approach to valuing and reporting inventory or eligible securities. Normally, ending inventory is stated at historical cost but according to generally accepted accounting principles, it should be valued using this method of lower of cost or market.