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Rate Lock Option - An option which, if exercised, guarantees an individual a specified interest rate on a loan, provided that the loan is closed within a set period of time.

Reaction - A short-term drop in prices.

Real Assets - Real estate or real property owned by an individual or business.

Real Estate Settlement Procedures Act (RESPA) - A federal law requiring, among other things, lenders provide home mortgage borrowers with information on known or estimated settlement costs. The Act also establishes guidelines for escrow account balances.

Realized Profits and Losses - A profit or loss realized from the sale of capital assets.

Real Property - Land and that which is affixed to it.

Real Time - A quote on a stock, bond, option or futures that reports the most current price available at the time a security changes hands. A delayed quote shows a security's price 15 minutes, and sometimes 20 minutes, after a trade takes place.

Recurring Payment - A payment that occurs at a regular interval for the same amount each time. An example of a recurring payment is a monthly loan or rent payment.

Refinancing - The repayment of a debt from the proceeds of a new loan using the same property as security.

Refund Check Charge - A charge imposed in the situation where payment is made by check but the check is not honored for any reason.

Regulatory Risk - The risk that regulators will change the current rules or impose new rules and that positions already on the books will be negatively impacted.

Reinvestment Risk - The risk that interest rates will decrease as investments or bond coupons come due.

Repair - A process a bank performs to adjust a payment instruction to ensure correct and automated processing.

Repayment Schedule - The document which details the loan balance, the estimated total amount of interest owed, the amount of each monthly payment, the total number of payments to be made and the date the first payment is due.

Repayment Term - The period during which a borrower is required to make loan payments.

Replacement Reserves - Monthly deposits that a lender may require a borrower to have on reserve in an account, along with principal and interest payments, for future capital improvements of major building systems; i.e., HVAC, parking lot, carpets, roof, etc.

Reserve Requirements - Non-earning balances which banks must maintain at the Federal Reserve Bank.

Return on Equity - Measures the return, expressed as a percentage, earned on a company's common stock investment for a specific period. It is calculated by dividing the common stock equity, or a company's net worth, into net income. The calculation is performed after preferred stock dividends and before common stock dividends. The return shows investors how effectively their money is being used by managers.

Revenue Bond - A bond in which the debt service is payable solely from the generated revenue associated with the operation of the project being financed, a category of facilities or from other non-tax sources.

Revocable Letter of Credit - A letter of credit that may be amended or cancelled at any time without providing prior notice to or consent of the beneficiary.

Revolving Balance - The balance that a credit cardholder carries from month to month that is subject to finance charges.

Revolving Letter of Credit - A letter of credit under which the amount is renewed or reinstated without specific amendments being required.

Rho - The sensitivity of the option price to a change in the interest rate.

Rollover - A tax-free method for moving money from a qualified retirement account to a Traditional IRA or from one Traditional IRA to another Traditional IRA or from one Roth IRA to another Roth IRA.

Roth IRA - Introduced in 1998, the Roth IRA allows for tax-free growth and withdrawal within certain guidelines. Contributions are never deductible, however, taxpayers are allowed to make contributions to a Roth IRA past age 70-1/2 and are not required to begin taking distributions at age 70-1/2.

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Glossary

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M&T Bank. Investment Services, Wealth Advisory and Corporate & Institutional products and services are offered by Wilmington Trust Company,
operated in Delaware only, and Wilmington Trust, N.A. International Corporate & Institutional services are offered through our international affiliates.

 Investments: • Are NOT FDIC-Insured. • Have NO Bank Guarantee. • May Lose Value. 
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