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credited for value

English translation: full value added to the account so that you can withdraw from it

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GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
English term or phrase:credited for value
English translation:full value added to the account so that you can withdraw from it
Entered by: zax
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10:17 Nov 1, 2006
English to English translations [PRO]
Bus/Financial - Business/Commerce (general) / banking
English term or phrase: credited for value
The sentence is: "Any instructions to the Bank which relate to any movement of funds or settlement of securities shall be given to the Bank no later than 1:00 PM on the Business Day before the day on which such funds are to be credited for value or such securities are to be settled". What does "for value" mean in this particular context? If possible, please provide references. Thanks in advance.
Pedro Coral Costa
Local time: 23:41
full value added to the account so that you can withdraw from it
Explanation:
zax
Selected response from:

zax
Local time: 18:41
Grading comment
Thanks everyone for the help.
4 KudoZ points were awarded for this answer

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Summary of answers provided
5 +4full value added to the account so that you can withdraw from itzax
5paid into the financial institution for verification before becoming 'available'
Robert Fox
4 +1transaction completed and the amount made available for use
R. A. Stegemann
4acknowledged for interest calculation or settlement
Erich Ekoputra


  

Answers


42 mins   confidence: Answerer confidence 5/5 peer agreement (net): +4
full value added to the account so that you can withdraw from it


Explanation:
zax

zax
Local time: 18:41
Specializes in field
Native speaker of: Native in ArabicArabic, Native in EnglishEnglish
PRO pts in category: 15
Grading comment
Thanks everyone for the help.

Peer comments on this answer (and responses from the answerer)
agree  R. A. Stegemann: Please see my explanation below.
43 mins
  -> Thanks, Hamo

agree  Jack Doughty
56 mins
  -> Thanks, Jack

agree  Alexander Demyanov
2 hrs
  -> Thanks, Alexander

agree  xxxAlfa Trans
8 hrs
  -> Thanks, Marju
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1 hr   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +1
transaction completed and the amount made available for use


Explanation:
Unless a direct cash deposit is made banks must verify that the depositor's credit is worthy before funds deposited to an account can be made available to the account's owner for use.

Banks will typically add the value of a deposit to an account, but not make the deposit available until the verification is complete.



R. A. Stegemann
Saudi Arabia
Local time: 07:41
Native speaker of: Native in EnglishEnglish
PRO pts in category: 4

Peer comments on this answer (and responses from the answerer)
agree  Alexander Demyanov: I still think zax's option is more exact because the "next day" policy doesn't always give enough time for complete verification. That's what many Nigerian con schemes rely on.//Good for you. Most US banks though will give you cash next business day.
2 hrs
  -> Thank you, but the banking systems with which I am familiar are very reputable, and in the case of checks issued from overseas I have been made to wait beyond the promised availability date -- once, for nearly a month!
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1 hr   confidence: Answerer confidence 5/5
paid into the financial institution for verification before becoming 'available'


Explanation:
The financial institution receives instructions from the client (or third party) to credit a certain amount into a specified account. Before making this credit available to the account holder(s), the validity of the transaction must be confirmed by reference to the source of the funds (usually another financial institution). This can take a number of days. When this check has been completed successfully the funds receive a 'real' value and become available to the account holder(s)

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Note added at 1 hr (2006-11-01 11:58:13 GMT)
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See 'Section 8.3 Credits' of the above web reference


    Reference: http://contracts.onecle.com/mastercard/hsbc.svc.2002.09.30.s...
Robert Fox
Ireland
Local time: 23:41
Works in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 4
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3 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5
acknowledged for interest calculation or settlement


Explanation:
There is a banking terminology called "(effective) value date"which is basically the date when your funds are acknowledged by the bank for interest calculation or settlement.

Basically, what the bank says above is this:
Instruction to move fund must received before 1 pm of a business day that is a day before calculation for interest of or settlement effected by the fund is wanted by the clients.

Note: the calculation of interest will be done by the target bank (= the bank where the fund is transfered to).

Say, in USA, you have an account in Bank of America (BOA) and another in Nations Bank (NB). You want to transfer fund from BOA to NB and the fund must be acknowledged by NB on Nov 2. Then, your instruction must be received by BOA on Nov 1 by 1 pm.

Nov 2 will then be the value date. If your account in NB is demand deposit, that day is the day the fund starts yielding interest for you. If the account is loan account, NB acknowledges that day as your loan (installment) payment date and starts calculations--interest, charge, loan balance update--based on that date. In this case, posting date = value date.

Special case happens when your instruction is received on Friday or the last working day of the week, for example Nov 3, 2006. Then, posting date (the time transaction is recorded) is Nov 4, but value date (the time the fund is acknowledged) is Nov 6 (Monday).

Pls look for/google these two terms: posting date, value date.

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Note added at 4 hrs (2006-11-01 14:29:51 GMT)
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Pls read 3rd paragraph: ....must BE received...

Simply said, there are two types of fund moving instruction: move the fund OUT to other bank (by giving transfer instructuon), or move the fund IN from other bank (by presenting other bank's cheque, letter of credit, etc.). I believe the text refers only to the first type, because in that case, the bank can give guarantee when the movement is effective (= credited for value) as the fund is under its control.

For the second type, the bank must go through verification process that may be longer than one day when the cheque is international (e.g. traveller cheque) or the L/C is not from correspondent bank. I dont think the bank can guarantee that a cheque or L/C received by 1 pm will be credited next day due to variability in verification lead time.



Erich Ekoputra
Indonesia
Local time: 05:41
Specializes in field
Native speaker of: Native in IndonesianIndonesian
PRO pts in category: 26
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