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Meaning / Definition of

Gramm-Leach-Bliley Act

Categories: Credit and Debt, Banking,

GLB Act or GLBA. Legislation that, on one hand, allows great freedom to financial institutions in offering a full range of services and, on the other hand, imposes strict controls on how institutions share or disclose personal financial information. Signed into law in 1999 by President Clinton, GLBA repeals the key provisions of the Glass-Steagall Act of 1933 and the bank holding company Act of 1956 that barred banks from securities trading and insurance business. In its corporate aspect, the act introduces two new organization types - the financial holding company and the financial subsidiary. Under these provisions, banks, insurance companies, securities trading companies, and other types of financial institutions can together exist as one consolidated corporate entity. In its consumer aspect, the GLBA authorizes the states and eight federal agencies to monitor all collectors and holders of personal financial information, and to enforce the financial privacy rule, safeguards rule, and 'pretexting' (obtaining personal information under false pretext) rule. These rules apply also to any entity that offers any type of financial product or service, including brokers, debt collectors, credit counselors, financial advisors, small lenders, and tax-return preparers. The GLBA gives consumers some control over how their financial information is used and disclosed (beyond the purpose for it was collected) via the opt-out provision that lets them choose the option of not divulging this information.

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Definition / Meaning of

Highest And Best Use

Categories: Real Estate,

Key appraisal and zoning principle employed in valuing any parcel of land or property. Since the value of a property and its use are closely linked, its highest and best use is that which results in the highest present value, and brings in the greatest net return over a given period or the foreseeable future - within the applicable constraints. The value of, and return on, a property are related to its surrounding environment so its use has to be consistent with the neighboring land use. Because a property's value is influenced by the local competitive and political forces, the timing of the property development is another critical factor. And, especially in metropolitan areas, where a property can be put to several different uses, its combination of uses is very important. A highest and best use appraisal must take these four factors into consideration: (1) legal permissibility, (2) physical possibility, (3) financial feasibility, and (4) maximum productive use. However, even the most detailed appraisal is simply a considered opinion of an appraiser, not the final word.

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