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Lagging - An international cash management technique of initiating payments after scheduled due dates to manage foreign exchange exposure.

Land Acquisition Loan (Acquisition loan) - A loan made for the purpose of purchasing land only, not improvements on or to the land.

Leading - An international cash management technique of initiating payments ahead of schedule to manage foreign exchange exposure.

LEAP - A long-term option contract for a company's stock that usually runs for one year or more and is available on several U.S. exchanges.

Leasehold Improvements - Improvements to a leased property, often paid by the tenant.

Legal and Regulatory Risk - The impact on a company reflecting new or changing laws impacting its normal course of business.

Legal Risks - Risks that result when a company transacts business with a party in a foreign country which is subject to different legal and regulatory frameworks.

Lender Paid Mortgage Insurance (LPMI) - Mortgage insurance the cost of which is included in the interest rate. Although the interest rate is slightly higher with LPMI, this option usually results in a lower monthly payment and a larger tax deduction.

Letter of Credit - A financing instrument issued by a bank to an individual or corporation by which the bank substitutes its own credit for that of the borrower (buyer) in return for a fee paid by the borrower.

Leverage - The minimizing of actual cash exposure while attempting to maximize (e.g. trading on margin) the upside opportunity.

Leverage Swaps - Swap arrangements that can be structured in a variety of ways but have as a common characteristic a variable rate payment that adjusts at a multiple of the actual change in market rates.

Lien - A legal claim of one person on the property of another.

Lifetime Cap - A provision included in an ARM loan that limits the total increase in the interest rate over the life of the loan.

Limited Partnership - A form of business ownership that consists of one or more general partners who are fully liable, and one or more limited partners who are liable only for their investment amount.

Line of Credit - An agreement by a commercial bank or other financial institution to extend credit to a specific borrower up to a certain amount and for a certain period of time.

Liquidity - Cash position based on assets or investments that can be readily converted to cash.

Liquidity Risk - The risk of a company's working capital becoming insufficient to meet near term operating financial demands.

Loan-to-Value (LTV) Ratio -The dollar amount of the loan divided by the value of the asset which will serve as security for the loan. For example, with a loan amount of $10,000 and an asset value of $15,000, the LTV is 66%.

London Interbank Offered Rate (LIBOR) - The rate at which banks in the foreign market lend dollars to each other. LIBOR varies by deposit maturity. It is an index of the Eurodollar market which rivals the U.S. treasury market in both size and liquidity. LIBOR is set each business day at 11:00 a.m. London time. It is an international average of offered rates for dollar deposits based on quotes at eight major banks.

Low Price - The day's lowest price of a security that has changed hands between a buyer and a seller.

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