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Certificate of Deposit

A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate and can be issued in any denomination. CDs are generally issued by commercial banks and are insured by the FDIC. The term of a CD generally ranges from one month to five years.

A certificate of deposit is a promissory note issued by a bank. It is a time deposit that restricts holders from withdrawing funds on demand. Although it is still possible to withdraw the money, this action will often incur a penalty.

Proof of the Assets (POA)

A term used to describe an asset, company, industry or other entity that is believed to be economically resistant to the outcomes of a recession. Oftentimes, recession-proof stocks are added to many investment portfolios during times of economic decline, which may be the onset of a recession. Securities that are believed to be recession proof often have negative beta values, which would indicate an inverse relationship to the greater market.

The following documents may supply proof of assets or resources:

  A.   Checking, Savings (or Credit Union Draft/Share) Accounts – monthly statement

  B.   Savings Certificates, Certificates of Deposit (CDs), or Bonds – certificate or bond

  C.   Stocks or Bonds – certificates

  D.   Cash on hand

  E.   Personal Property – the values for items like campers/trailers, non-motorized boats, utility trailers not used for business

  F.   Pension plans or retirement accounts – the value minus any withdrawal penalties

  G.   Life insurance – the cash surrender value, not the amount that would be received because of the death of the insured person

  H.   Vehicle (second or more)- Blue book or NADA book wholesale (trade-in) value or loan statement/payment book

  I.   Other Assets

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