Direct line loan

A loan is a type of debt. All material things can be lent; this article, however, focuses exclusively on monetary loans. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower. The borrower initially receives an amount of money from the lender, which they pay back, usually but not always in regular installments, to the lender. This service is generally provided at a cost, referred to as interest on the debt. A borrower may be subject to certain restrictions known as loan covenants under the terms of the loan. Acting as a provider of loans is one of the principal tasks for financial institutions. For other institutions, issuing of debt contracts such as bonds is a typical source of funding. Bank loans and credit are one way to increase the money supply. A mortgage loan is a very common type of debt instrument, used by many individuals to purchase housing. In this arrangement, the money is used to purchase the property. The financial institution, however, is given security - a lien on the title to the house - until the mortgage is paid off in full. If the borrower defaults on the loan, the bank would have the legal right to repossess the house and sell it, to recover sums owing to it. In some instances, a loan taken out to purchase a new or used car may be secured by the car, in much the same way as a mortgage is secured by housing. The duration of the loan period is considerably shorter - often corresponding to the useful life of the car. There are two types of auto loans, direct and indirect. A direct auto loan is where a bank gives the loan directly to a consumer. An indirect auto loan is where a car dealership acts as an intermediary between the bank or financial institution and the consumer. The interest rates applicable to these different forms may vary depending on the lender, the borrower. These may or may not be regulated by law. In the United Kingdom, when applied to individuals, these may come under the Consumer Credit Act 1974. Predatory lending is one form of abuse in the granting of loans. It usually involves granting a loan in order to put the borrower in a position that one can gain advantage over him or her. Where the moneylender is not authorised, it could be considered a loan shark. Usury is a different form of abuse, where the lender charges excessive interest. In different time periods and cultures the acceptable interest rate has varied, from no interest at all to unlimited interest rates. Credit card companies in some countries have been accused by consumer organisations of lending at usurious interest rates and making money out of frivolous "extra charges" [1] Although a loan does not start out as income to the borrower, it becomes income to the borrower if the borrower is discharged of indebtedness. [18] Thus, if a debt is discharged, then the borrower essentially has received income equal to the amount of the indebtedness. The Internal Revenue Code lists “Income from Discharge of Indebtedness” in Section 62(a)(12) as a source of gross income.

Direct line loan

A line can be described as an ideal zero-width, infinitely long, perfectly straight curve (the term curve in mathematics includes "straight curves") containing an infinite number of points. In Euclidean geometry, exactly one line can be found that passes through any two points. The line provides the shortest connection between the points. In two dimensions, two different lines can either be parallel, meaning they never meet, or may intersect at one and only one point. In three or more dimensions, lines may also be skew, meaning they don't meet, but also don't define a plane. Two distinct planes intersect in at most one line. Three or more points that lie on the same line are called collinear. This intuitive concept of a line can be formalized in various ways. If geometry is developed axiomatically (as in Euclid's Elements and later in David Hilbert's Foundations of Geometry), then lines are not defined at all, but characterized axiomatically by their properties. While Euclid did define a line as "length without breadth", he did not use this rather obscure definition in his later development. More abstractly, one usually thinks of the real line as the prototype of a line, and assumes that the points on a line stand in a one-to-one correspondence with the real numbers. However, one could also use the hyperreal numbers for this purpose, or even the long line of topology. In Euclidean geometry, a ray, or half-line, given two distinct points A (the origin) and B on the ray, is the set of points C on the line containing points A and B such that A is not strictly between C and B. In geometry, a ray starts at one point, then goes on forever in one direction.

Direct line loan

Direct current (DC or "continuous current") is the unidirectional flow of electric charge. Direct current is produced by such sources as batteries, thermocouples, solar cells, and commutator-type electric machines of the dynamo type. Direct current may flow in a conductor such as a wire, but can also be through semiconductors, insulators, or even through a vacuum as in electron or ion beams. In direct current, the electric charges flow in the same direction, distinguishing it from alternating current (AC). A term formerly used for direct current was Galvanic current. Direct current may be obtained from an alternating current supply by use of a current-switching arrangement called a rectifier, which contains electronic elements (usually) or electromechanical elements (historically) that allow current to flow only in one direction. Direct current may be made into alternating current with an inverter or a motor-generator set. The first commercial electric power transmission (developed by Thomas Edison in the late nineteenth century) used direct current. Because of the advantage of alternating current over direct current in transforming and transmission, electric power distribution today is nearly all alternating current. For applications requiring direct current, such as third rail power systems, alternating current is distributed to a substation, which utilizes a rectifier to convert the power to direct current. See War of Currents. Direct current is used to charge batteries, and in nearly all electronic systems as the power supply. Very large quantities of direct-current power are used in production of aluminum and other electrochemical processes. Direct current is used for some railway propulsion, especially in urban areas. High voltage direct current is used to transmit large amounts of power from remote generation sites or to interconnect alternating current power grids. Within electrical engineering, the term DC is a synonym for "constant". For example, the voltage across a DC voltage source is constant as is the current through a DC current source. The DC solution of an electric circuit is the solution where all voltages and currents are constant. It can be shown that any voltage or current waveform can be decomposed into a sum of a DC component and a time-varying component. The DC component is defined to be the average value of the voltage or current over all time. The average value of the time-varying component is zero. DC is commonly found in many low-voltage applications, especially where these are powered by batteries, which can produce only DC, or solar power systems, since solar cells can produce only DC. Most automotive applications use DC, although the alternator is an AC device which uses a rectifier to produce DC. Most electronic circuits require a DC power supply. Applications using fuel cells (mixing hydrogen and oxygen together with a catalyst to produce electricity and water as byproducts) also produce only DC. Many telephones connect to a twisted pair of wires, and internally separate the AC component of the voltage between the two wires (the audio signal) from the DC component of the voltage between the two wires (used to power the phone).