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EBA
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The Euro Banking Association. An association of Europe's largest banks, which operates clearing systems to transfer high and low value payments denominated in Euro.
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Effective Date
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The date or the event that gives effect to the Guarantee, eg, payment of an advance.
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EFTPOS
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Electronic Funds Transfer at point of sale. Technical term for the process undertaken by the electronic box in a retail outlet that sends plastic card transactions to the bank.
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Electronic Data Interchange (EDI)
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Paperless exchange of forms (often official or contractual documents) between different locations.
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Electronic Funds Transfer (EFT)
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Electronic Funds Transfer (EFT). Can be a generic term for an electronic payment or Direct credit. The expression is also associated specifically with the payment system or service used for 'same day' payments in the UK, ie, CHAPS, the Clearing House Automated Payment System.
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e-mail
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Means of sending communications eg, memos, letters and attached files from one computer to another. The e-mail system may be internal to a company, or open. If it is web-based you can access your emails from anywhere.
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Emerging Market
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Generally seen as one where one or more of the following applies:- (1) the currency is freely tradeable but its country’s economy is small when viewed on a global scale (2) central government imposes some form of restrictions and/or exchange controls on the currency (3) there is the perception of political and/or economic instability that could lead to a change in the currency's status.
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Emerging Market Currency
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The currency of an Emerging Market country.
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Employers Liability
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This is a legal requirement where a business employs one or more people, and covers the Legal Liability of the business to provide safe working conditions to its employees. An example might be an employee injured whilst carrying a heavy load at work who sues his employer for damages.
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EMU
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Economic and Monetary Union. The formation of a single monetary zone in which there will be a single currency. This has been adopted by those countries within the EU who met the convergence criteria. See Euro.
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Encryption
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High level security software for electronic data where the data is scrambled using complex algorithms, ensuring that the data cannot be read by anyone else.
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Endorsement
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Signing of a document (eg, draft, insurance document or bill of lading) usually on the reverse to transfer title to another party. Documents are often endorsed in blank to permit any future holder to gain title.
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EPM
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European Central Bank Payment Mechanism.
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EPOS
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Electronic point of sale, usually a card swipe machine or cash till incorporating a card swipe facility.
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Equity
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A shareholding in a company - this gives part ownership of the company to the shareholder.
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Equity (Capital) funding eg, Venture Capital
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Venture capital is a means of financing the start-up, development, expansion or purchase of a company, whereby the venture capitalist acquires an agreed proportion of the share capital (equity) of the company in return for providing the requisite funding. These investors take a higher risk than debt financiers, so they seek a higher return from their investment and may wish to be involved in the running of the business at non-executive director level. For more information, consult the British Venture Capital Association web site.
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Equivalent Annual Rate (EAR)
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Equivalent Annual Rate. This takes account of the interest rate and how often interest is paid, and does not include any fees or charges.
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Escalation Clause
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A term used in the Guarantee that allows for an increase in the Guarantee amount when a specified condition has been satisfied, eg, stage payments effected under a contract.
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Ethernet
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The most popular networking standard, used to allow you to transfer files to another machine.
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Euribor
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A daily fixing rate for Euro interest rates taken from 57 European banks at 11.00am Central European Time.
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Euro
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Legal currency of those countries (Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, and Spain) participating in EMU.
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Euroland
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A name commonly given to the 12 countries in Europe which have adopted the Euro as their national currency.
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Eurolibor
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A daily fixing rate for Euro interest rates taken from 16 major banks at 11.00am London time.
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European Monetary Union (EMU)
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The framework for closer financial links for members of the European Union. 12 Countries have agreed to participate to date, however, the UK's entry is not anticipated until 2006/7 at the earliest and will be subject to a referendum.
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European Style
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An option which may only be exercised on the expiry date following which funds will be transferred on a spot basis.
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Eurozone
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A name commonly given to the 12 countries in Europe which have the Euro as their national currency.
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Excess
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This is the first part of each and every claim which you (not your insurer) must pay. There are two types of excess: 1. A compulsory excess is an amount required by your insurer and will vary according to your personal circumstances and the terms of cover provided. A compulsory excess may be required if you drive a particular car or you have inexperienced drivers on your policy. There is also a compulsory excess for fire, theft or windscreen claims. 2. A voluntary excess will apply when you agree with your insurer to pay a greater part of each claim than the compulsory excess. A voluntary excess can be increased or decreased at your request during your online quotation and it may affect your premium.
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Exchange Rate
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The rate at which one currency can be exchanged for another at any particular time.
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Exercise
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The process of taking up the right to transact of a purchased option.
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Expiry
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The Calendar date or event after which any obligations arising under the Guarantee will cease and, typically the time by which any Call, Claim or Demand must have been received by the Guarantor.
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Expiry Date
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The latest date by which documents must be presented under a documentary credit or guarantee.
In respect of foreign exchange the date by which the right to transact of a purchased option must be taken up if required.
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Export Line
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A banking facility provided to an exporter to finance his international trade.
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Extend or Pay
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The terms used to describe the Beneficiary's action of requesting an extension to the Guarantee expiry as an alternative to payment. If the Beneficiary holds a Simple Demand Guarantee it can easily accomplish the desired extension if the Guarantor agrees.
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Extendibility Clause
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Terminology used in the Guarantee that allows for an extension to the Expiry when a specified condition has been satisfied, eg, an extension to the latest shipment in a related documentary credit.
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Extension Request
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An unconditional request submitted by the Beneficiary seeking an extension to the expiry of the Guarantee - also see Extend or Pay.
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