Discount Income definition
Discount Income means the amortization of discounts which have been assessed by Household Bank on various promotional credit plans in accordance with Schedule A. These discounts are assessed at funding and will be amortized in accordance with Household Bank's standard accounting policies. q. "Excess Loss Provision" means the Monthly charge or credit necessary to maintain an appropriate bad debt reserve on outstanding Account balances in accordance with Household Bank's standard accounting policies. r. "Existing Portfolio" means the existing portfolio of Private Label Credit Card accounts arising from the program established and maintained by Transamerica Bank, N.A. and Transamerica Retail Financial Services Corporation (collectively "Transamerica") for Polaris, which existing portfolio Household Bank has agreed to purchase pursuant to a Purchase and Sale Agreement dated July 24, 2001, by and between Household Bank and Transamerica. s. "Fee Income" means late fees, NSF fees, net direct check fees, debt cancellation program fees, overlimit fees, and any other fees, except fees related to credit insurance, Finance Charge Income, and Discount Income, assessed and billed to Accounts, net of reversals. t. "Finance Charge Income" represents billed finance charges on Account balances net of reversals. u. "Interest Expense" means an amount equal to the product of: (i) the result of the One Year LIBOR plus 40 basis points divided by twelve, times (ii) 85% of the Average Account Balances for such Month less unamortized Discount Income plus unamortized Dealer Participation Expense. v. "Marketing Expenses" means and includes, but is not limited to, expenses for point of sale materials, direct mail materials, general media advertising and any other marketing materials or Revolving Program related to promoting and marketing the Revolving Program mutually agreed upon by Household Bank and Polaris. Marketing Expenses shall not include discounts associated with Credit Promotions or Participation Fees. w. "Month" means a calendar month unless used in connection with a Credit Promotion Period. x. "Net Chargeoff" means the sum of the principal, interest, fees and other components of an Account balance which is charged off by Household Bank in accordance with Household Bank's standard operating procedures, net of any recoveries received by Household Bank after the charge-off of such Accounts. y. "One Year LIBOR" means the Business Daily average, for the applicable calendar month, of the one (1...
Examples of Discount Income in a sentence
The purchase price shall be negotiated, but it shall not be less than one hundred percent (100%) nor more than one hundred five percent (105%) of the full amount of all of the outstanding Account balances, plus accrued interest and fees from the last Billing Cycle through the date of sale, plus unamortized Dealer Participation Expense, minus the full amount of the bad debt reserve and minus the full amount of unamortized Discount Income.