Search Results for: LOOPHOLE

loophole

loophole. An ambiguity, omission, or exception (as in a law or other legal document) that provides a way to avoid a rule without violating its literal requirements; esp., a tax-code provision that allows a taxpayer to legally avoid or reduce income taxes.

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nonbank bank

A financial institution that either accepts demand deposits or makes commercial loans, but, unlike banks, does not do both at the same time and therefore can avoid federal regulations on bank ownership. • Nonbank banks were esp. prolific in the 1980s, but amendments to the definition of a bank under federal law have essentially closed

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