Savings And Loan Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Savings And Loan, written in plain English, along with examples of how it is used.
What is Savings And Loan?
(n) Saving and Loan banks are the financial institution chartered by federal government to accept deposit paying higher interest and to provide loan secured on properties.
History and Meaning of Savings And Loan
Savings and Loans (S&Ls) emerged in the US during the 19th century as an alternative to commercial banks, offering depositors higher interest rates on their savings. These institutions focused primarily on providing funds for home mortgages, a practice that became even more critical after World War II, as the baby boom generation started purchasing homes at unprecedented rates. Saving and Loan banks are a type of financial institution that is chartered by the federal government and is entrusted with the task of accepting deposits that pay higher interest rates and providing loans that are secured on properties.
Examples of Savings And Loan
- "I went to the Savings and Loan to open a savings account."
- "The Savings and Loan approved my mortgage and the process was straightforward."
- "John lost his entire life savings when his Savings and Loan went bankrupt."
Legal Terms Similar to Savings And Loan
- Commercial Banks: Commercial banks are financial institutions that take deposits from customers and use the funds to make loans to individuals and businesses.
- Credit Unions: Similar to S&Ls, credit unions are non-profit financial institutions owned by their members and are focused on providing affordable financial products and services.
- Mortgage Bank: Mortgage banks are financial institutions that specialize in originating and servicing mortgage loans.