Banking Glossaries-L

Large Value Transfer System (LVTS)

System being created by the Canadian Payments Association to settle large value payments at the central bank on a same-day basis.

Lease

An agreement to rent for a period of time at an agreed price.

Line of Credit

An agreement negotiated between a borrower and a lender establishing the maximum amount of money a borrower may draw. The agreement also sets out other conditions, e.g., how and when money is to be repaid.

Long-term liabilities

Money that you owe over a period longer than 12 months, such as mortgages, bank loans and other obligations.