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5 C's of credit — The five key elements a borrower should have to obtain credit: character (integrity), capacity (sufficient cash flow to service the obligation), capital (net worth), collateral (assets to secure the debt), and conditions (of the borrower and the overall economy).

Accrued Dividend — Regular dividend that is considered to be earned but not declared or payable.

Amortization — The gradual elimination of a liability (what is owed), such as a mortgage, in regular payments over a specified period of time.  Such payments must be sufficient to cover both principal and interest.

Automated Clearing House (ACH) — A network of regional electronic networks between financial institutions used to process transactions electronically with a guaranteed one-day process time.

Average Daily Balance — The average balance that exists in an account over a period of time.  The number is calculated by adding the daily balances over a period of time and dividing by the total number of days in that period.  Used in the average daily balance method for determining interest.

Dividend — Money paid by the credit union as earnings on shares.

Statement — A periodic report mailed to members indicating the status of shares and any dividends earned, in addition to the status of loans and any interest paid.  Commonly, members with a Regular Share account will receive statements quarterly; members with other accounts will receive statements each month.