Board Package sub-glossary

An application to purchase is a collection of forms and supporting documents, or the board package, submitted to a co-operative or condominium management company, for a proposed transfer, to be approved by a board of directors.

 

An asset/liability statement is a list of investments and debts: assets minus liabilities equals an individual’s net worth.

 

Assets are investments or items of value; a liquid asset is one that can be readily converted to cash.

 

An Aztec recognition agreement acknowledges that a lender in a co-operativeownership apartment house has an interest, and permits recourse if a borrower defaults.

 

Board of directors’ approval is the process, and positive result, wherein a co-operative apartment house requires a buyer to submit an application to purchase.

 

A board of directors’ interview is a formal meeting between a prospective buyer and a delegation of co-owners; one owner, a committee, or an entire board of directors.

 

Board-passable describes a qualified bidder, or one whose application to a board of directors will be approved.

A credit report reflects an individual’s credit history, and is used by co-ownership management companies and landlords in verifying an applicant’s creditworthiness.

An illiquid asset is not readily convertible into cash, such as art, jewelry, and furs; stock investments, bond holdings, money-market funds, and certificates of deposit are liquid assets.

 

Revolving credit or debt allows the purchasing or borrowing of funds against a pre-approved, unsecured credit line.

 

Vested describes an individual’s right to withdraw funds from retirement plans, which then becomes a liquid—rather than illiquidasset.