Credit (from Latincredit, "(he/she/it) believes") is the trust which allows one party to provide money or resources to another party where that second party does not reimburse the first party immediately (thereby generating a debt), but instead arranges either to repay or return those resources (or other materials of equal value) at a later date. The resources provided may be financial (e.g. granting a loan), or they may consist of goods or services (e.g. consumer credit). Credit encompasses any form of deferred payment. Credit is extended by a creditor, also known as a lender, to a debtor, also known as a borrower.
Credit does not necessarily require money. The credit concept can be applied in barter economies as well, based on the direct exchange of goods and services. However, in modern societies, credit is usually denominated by a unit of account. Unlike money, credit itself cannot act as a unit of account.
Movements of financial capital are normally dependent on either credit or equity transfers. Credit is in turn dependent on the reputation or creditworthiness of the entity which takes responsibility for the funds. Credit is also traded in financial markets. The purest form is the credit default swap market, which is essentially a traded market in credit insurance. A credit default swap represents the price at which two parties exchange this risk–the protection seller takes the risk of default of the credit in return for a payment, commonly denoted in basis points (one basis point is 1/100 of a percent) of the notional amount to be referenced, while the protection buyer pays this premium and in the case of default of the underlying (a loan, bond or other receivable), delivers this receivable to the protection seller and receives from the seller the par amount (that is, is made whole).
The core group of generic top-level domains consists of the com, info, net, and org domains. In addition, the domains biz, name, and pro are also considered generic; however, these are designated as restricted, because registrations within them require proof of eligibility within the guidelines set for each.
Historically, the group of generic top-level domains included domains, created in the early development of the domain name system, that are now sponsored by designated agencies or organizations and are restricted to specific types of registrants. Thus, domains edu, gov, int, and mil are now considered sponsored top-level domains, much like the themed top-level domains (e.g., jobs). The entire group of domains that do not have a geographic or country designation (see country-code top-level domain) is still often referred to by the term generic TLDs.
In finance, subprime lending (also referred to as near-prime, non-prime, and second-chance lending) means making loans to people who may have difficulty maintaining the repayment schedule, sometimes reflecting setbacks, such as unemployment, divorce, medical emergencies, etc. Historically, subprime borrowers were defined as having FICO scores below 640, although "this has varied over time and circumstances."
These loans are characterized by higher interest rates, poor quality collateral, and less favorable terms in order to compensate for higher credit risk. Many subprime loans were packaged into mortgage-backed securities (MBS) and ultimately defaulted, contributing to the financial crisis of 2007–2008.
Proponents of subprime lending maintain that the practice extends credit to people who would otherwise not have access to the credit market. Professor Harvey S. Rosen of Princeton University explained, "The main thing that innovations in the mortgage market have done over the past 30 years is to let in the excluded: the young, the discriminated-against, the people without a lot of money in the bank to use for a down payment."
Liberty, in philosophy, involves free will as contrasted with determinism. In politics, liberty consists of the social and political freedoms enjoyed by all citizens. In theology, liberty is freedom from the bondage of sin. Generally, liberty seems to be distinct from freedom in that freedom concerns itself primarily, if not exclusively, with the ability to do as one wills and what one has the power to do; whereas liberty also takes into account the rights of all involved. As such, liberty can be thought of as freedom limited by rights, and therefore cannot be abused.
Philosophers from earliest times have considered the question of liberty. Roman Emperor Marcus Aurelius (121–180 AD) wrote of "a polity in which there is the same law for all, a polity administered with regard to equal rights and equal freedom of speech, and the idea of a kingly government which respects most of all the freedom of the governed." According to Thomas Hobbes, "a free man is he that in those things which by his strength and wit he is able to do is not hindered to do what he hath the will to do" (Leviathan, Part 2, Ch. XXI).
A liberty was an English unit originating in the Middle Ages, traditionally defined as an area in which regalian right was revoked and where the land was held by a mesne lord (i.e., an area in which rights reserved to the king had been devolved into private hands). It later became a unit of local government administration.
Liberties were areas of widely variable extent which were independent of the usual system of hundreds and boroughs for a number of different reasons, usually to do with peculiarities of tenure. Because of their tenurial rather than geographical origin, the areas covered by liberties could either be widely scattered across a county or limited to an area smaller than a single parish: an example of the former is Fordington Liberty, and of the latter, the Liberty of Waybayouse, both in Dorset.
In northern England, the liberty of Bowland was one of the larger tenurial configurations covering some ten manors, eight townships and four parishes under the sway of a single feudal lord, the Lord of Bowland, the so-called Lord of the Fells. Up until 1660, such lords would have been lords paramount.