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Term loans differ from installment loans in that monthly principal reductions are not mandatory. Interest is required to be paid at stated intervals, most often quarterly, with the entire principal and accrued interest due at maturity.
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NOTICE: By operation of federal law, beginning January 1, 2013, funds deposited in a noninterest-bearing transaction account (including an Interest on Lawyer Trust Account/IOLTA) no longer will receive unlimited deposit insurance coverage by the Federal Deposit Insurance Corporation (FDIC).
Beginning January 1, 2013, all of a depositor's accounts at an insured depository institution, including all noninterest-bearing transaction accounts, will be insured by the FDIC up to the standard maximum deposit insurance amount ($250,000), for each deposit insurance ownership category.
For more information about FDIC insurance coverage of noninterest-bearing transaction accounts, visit: http://www.fdic.gov/deposit/deposits/unlimited/expiration.html or go to "What's New" on www.fdic.gov.
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