Glossary of Terms

In addition to the definitions which appear in the Standards MT General Information, Glossary of Terms, the following terms apply to category 1 message types:

Available Funds: Funds available for transfer or withdrawal in cash.

Bankleitzahl: An eight digit numeric code used to identify banks in Germany. It may only be assigned, changed or cancelled by Deutsche Bundesbank, in Germany.

CHIPS (Clearing House Interbank Payments System): A private telecommunications payment service operated by the New York Clearing House Association for banks in the New York area, which handles US dollar payments only.

CHIPS Participant: A bank authorized to send and receive payments on the CHIPS system.

CHIPS Participant ID (ABA Number): A unique number identifying a CHIPS participant. The first four digits are the participant's number, followed by a one digit group identifier. For SWIFT purposes, only the first four digits of the CHIPS Participant ID will be used.

CHIPS Settling Participant: A CHIPS Participant responsible for the settlement of its own CHIPS net debit or credit position at the end of the CHIPS business day.

CHIPS Universal Identifier (U.I.D.): A unique six digit number assigned by CHIPS to identify an account.

Cover Payment: The reimbursement of a correspondent for a payment.

Debit Transfer Contract: The agreement between the creditor and its own account-holding institution, relating to the services offered and under what terms. It is accepted without reference in the text, that there is an underlying contract between the creditor and the debtor for the service which has been provided, and which requires payment. Agreement also exists between the account-holding institution and the body which acts as the data processing centre and/or clearing centre for direct debit transactions.

Debit Transfer Mandate: A debit transfer mandate is an agreement between a creditor and a debtor and possibly the debtor's bank. It authorises the creditor to debit the debtor's account according to the terms of the debit transfer mandate.

Drawee Bank: The bank on which a cheque is drawn. It is the bank which is expected to accept and pay a cheque.

Drawer Bank: The bank which signs the cheque giving an order to another bank (drawee bank) to pay the amount for which the cheque is drawn.

Federal Funds: US dollars on deposit at a Federal Reserve Bank in the United States.

Fedwire: A payment service operated by the US Federal Reserve System as a private wire network for transfers between financial institutions having accounts at the Federal Reserve Bank.

Fedwire Routing Number: A nine digit numeric code used to identify banks in the United States.

Funds Transfer: Complete movement of funds between the originator and the beneficiary. A funds transfer may consist of one or more funds transfer transactions.

Funds Transfer Transaction: The movement of funds directly between two parties, involving no intermediaries other than a payment or communications service.

Immediate Funds: Same day funds in which the settlement is simultaneous with execution of the transaction.

Instructing Party: The party instructing the Sender to execute a transaction.

Intermediary Reimbursement Institution: For SWIFT purposes, an institution receiving funds on behalf of the Receiver's Correspondent from the Sender's Correspondent.

Originator: Initiator of the transfer instructions. Equivalent to the ordering customer, for example, field 50a in the MT 103.

Originator's Institution: Identifies the financial institution which is acting for the Originator of the transfer. Equivalent to the ordering institution, for example, field 52a in the MT 103.

Payee: The beneficiary of a cheque.

Remitter: The party which is the source of funds in a payment order.

Same Day Funds: The funds available for transfer today, or for withdrawal in cash, subject to the settlement of the transaction through the payment mechanism used.

Settlement: A transfer of funds to complete one or more prior transactions made, subject to final accounting.